Representational image (File photo)
BENGALURU: Midcap IT services company Mindtree on Thursday posted a 27.5% increase in its consolidated net profit for the second quarter at Rs 509 crore. The company had posted a net profit of Rs 399 crore in the year-ago period.
It reported a 31% increase in revenue from operations for the second quarter at Rs 3,400 crore compared to Rs 2,586 crore in the same quarter last year. For the first time, with an order book of $518 million, its H1 signings have crossed $1 billion. Debashis Chatterjee, CEO and MD, Mindtree, said, “We maintained our EBITDA margin at a healthy 21% despite wage hikes across the board, making it our seventh consecutive quarter of more than 5% revenue growth in constant currency, and eighth consecutive quarter of more than 20% EBITDA margin.”
The company witnessed 20.4% YoY revenue growth for Top 10 clients. Of all the verticals, the company’s communications, media and technology industry contributes the maximum revenue to the company, followed by BFSI. Q3 is a seasonally weak quarter for the company, and Chatterjee said they are a bit cautious about the quarter. The company has 276 active clients as of September 30, 2022.
Its trailing 12 months attrition was 24.1%, and it expects moderation in the coming quarters. Its employee headcount stood at 38,290. Chatterjee also informed us that the LTI-Mindtree merger is in the final stages, and they will be merged by the end of this calendar year. It is expected that from the next quarter, the merged entity LTIMindtree will announce the results. The integration will see LTI and Mindtree join strengths to create a scaled-up IT services provider exceeding $3.5 billion. For the combined entity, BFSI will be the largest vertical.
