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Mindtree Profit Surges 34% At Rs 437 Crore In Q3

The Bengaluru-based company saw its revenue grow about 36 per cent to Rs 2,750 crore in the quarter under review from Rs 2,023.7 crore in the year-ago period.

Mindtree Profit Surges 34% At Rs 437 Crore In Q3
Mindtree Profit Surges 34% At Rs 437 Crore In Q3
outlookindia.com
2022-01-13T21:03:03+05:30

IT firm Mindtree on Thursday reported a 34 per cent rise in consolidated net profit at Rs 437.5 crore for the December 2021 quarter on the back of robust demand and aggressive customer mining.

The company had posted a net profit of Rs 326.5 crore in the same period last year, Mindtree said in a regulatory filing.

The Bengaluru-based company saw its revenue grow about 36 per cent to Rs 2,750 crore in the quarter under review from Rs 2,023.7 crore in the year-ago period, it added.

In dollar terms, net profit rose 32.1 per cent to $58.3 million, while revenue increased 33.7 per cent to $366.4 million in the said quarter over the year-ago period.

At the end of the December 2021 quarter, the company's active client base stood at 265. It had 31,959 employees at the end of the third quarter with a trailing 12-month attrition at 21.9 per cent.

"We are pleased to have continued our positive revenue momentum through the third quarter of FY22 on the back of robust demand, aggressive customer mining, and end-to-end digital transformation capabilities," Mindtree CEO and Managing Director Debashis Chatterjee said.

He added that the company's sequential revenue growth of 5.2 per cent in constant currency reflects the strength of its strategy, execution, partnerships, and continued investments in its business and people.

"Our order book for the quarter was $358 million, up 14.6 per cent year-over-year, and our year-to-date deal TCV (total contract value) crossed $1.2 billion. Our EBITDA margin for the quarter was 21.5 per cent," he said.

In the first nine months alone, Mindtree's PAT (Profit After Tax) of $158.8 million surpassed PAT of the preceding fiscal year, Chatterjee noted.

"The passion of our future-ready talent and the trust of our clients put us well in our endeavour to continue to deliver profitable industry-leading growth in the coming years,” he added.

At the end of the December 2021 quarter, the company's active client base stood at 265. It had 31,959 employees at the end of the third quarter with a trailing 12-month attrition at 21.9 per cent. Mindtree onboarded more than 4,500 people in the December quarter.

"To meet the growing client demand for our services, we have re-energised our recruitment engine. We are not only on track to meet our aggressive hiring targets for FY22 but also expect to significantly increase hiring in the coming quarters," Chatterjee said.

He added that the company is also tapping into tier-II and -III cities, setting up offices in Coimbatore and Warangal.

"With a rejuvenated campus hiring programme, we expect our hiring momentum from campuses to increase by 40 to 50 per cent through FY23. Mindtree Edge – our unique Learn and Earn program for BSc and BCA graduates – continues to progress as planned.

"By re-modelling and strengthening our flagship training programme for fresh graduates hires, we have been able to accelerate freshers deployment to client projects," he said.

He added that the focus continues to be on complementing external hiring with internal talent development.

Indian IT services companies have been dealing with high attrition rates as demand for digital talent has outstripped supply, leading to what industry experts call a "war for talent".

In the December 2021 quarter, TCS has seen its attrition rate rising to 15.3 per cent in IT services from 11.9 per cent in the previous quarter. Infosys has seen voluntary attrition (last 12 months – IT services) going to 25.5 per cent as against 20.1 per cent in the September 2020 quarter.

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