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Mindtree Q2 results: Profit grows 16.2%, revenue growth in constant currency at 13.4%

October 13, 2021 05:55 PM

Mindtree Q2 results: Profit grows 16.2%, revenue growth in constant currency at 13.4%
Mindtree Q2 results: Profit grows 16.2%, revenue growth in constant currency at 13.4%

Midcap IT services company Mindtree on October 13 reported healthy earnings growth in the July-September period, as consolidated profit grew by 16.2 percent and revenue 12.8 percent from the previous quarter.

Profit during the quarter came in at RS 398.9 crore compared to RS 343.4 crore in the June quarter and revenue rose to RS 2,586.2 crore from RS 2,291.7 crore in the same period. The figures were higher than a CNBC-TV18 poll estimate of RS358 crore and 2,500 crore, respectively.

The revenue in dollar terms showed a 12.8 percent sequential growth at $350.1 million for Q2FY22 and the same in constant currency grew at 13.4 percent, beating CNBC-TV18 poll estimates of 8.6 percent and 9.5-10 percent QoQ, respectively.

The Bengaluru-based IT services company has approved an interim dividend of RS10 per share.

The Bengaluru-based IT services company “reported yet another outstanding quarter of all-round performance”, Chief Executive Officer and Managing Director Debashis Chatterjee said.

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“Revenues in the second quarter were $350.1 million, up 12.7 percent sequentially and 34.1 percent year-over-year, which was the highest YoY growth for a quarter in a decade. We maintained EBITDA margin at 20.5 percent while making aggressive investments in further expanding domain, digital and leadership capabilities, geographic footprint, and hyperscaler partnerships,” he explained.

The broad-based momentum and growth outlook across all verticals, service lines and geographies attest to operational rigor and sharp focus on being a trusted business transformation partner to clients, Chatterjee said.

The value of contracts signed during the quarter was $360 million, lower compared to $504 million in the previous quarter. Contract value in Q2FY21 was at $303 million, the company told BSE.

Mindtree had 263 active clients at the end of September 2021. It added five clients in $10 million + category, three in $5 million+ category and seven in $1 million+ band.

The company said its banking, financial services and insurance vertical registered a 8.9 percent growth sequentially. Retail, CPG and manufacturing grew 29.7 percent, and communications, media and technology 5.4 percent.

Among other verticals, travel, transport and hospitality reported a 14.2 percent sequential growth.

At the operating level, earnings before interest and tax (EBIT) grew by 15.6 percent sequentially to RS 469.7 crore and margin expanded by 50 bps QoQ to 18.2 percent in September 2021 quarter, which were ahead of CNBC-TV18 poll estimates of RS 434.5 crore and 17.4 percent, respectively.

Attrition rate was at 17.7 percent in Q2FY22, up from 13.7 percent in Q1FY22.

Mindtree has approved an interim dividend of RS 10 per equity share.

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