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Mindtree Q3 results: Net profit rises 66% to Rs 326.5 crore

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L&T group IT firm Mindtree’s net profit rose 65.7% to Rs 326.5 crore, while revenues came in at Rs 2,023.7 crore in the quarter ended December 31.

In dollar terms, net profit was up 59.3% at $44.2 million and revenues were down marginally by 0.4% at $274.1 million.

The company added eight new clients during the quarter and had 276 active clients at the end of the quarter. Its total headcount was at 22,195 with a trailing 12-month attrition of 12.5%. Deal wins for the quarter were up 50.7% year on year to $312 million.

The company rolled out increments in January, and has onboarded all its campus hires, said CEO Debashis Chatterjee. “Our 4x4x4 strategy is showing strong demand across the sectors, and we expect the growth momentum to continue in the coming quarters,” he said.

Its EBIT margin was up 222 basis points sequentially to 19.6%, the highest ever level, on account of revenue growth, cost control, lower travel cost, higher utilisation and higher offshore mix, said Harit Shah, lead IT analyst at KR Choksey Shares & Securities.

The key Microsoft business posted a 3.6% revenue increase during the quarter. The company signed a five-year deal with a global wind turbine manufacturer and partnered a global airline to enhance consumer experience on mobile digital platforms during the quarter.

Among the various geographies, the Asia-Pacific region grew 10.5% sequentially, followed by North America at 4.7% and Europe at 4.3%. The data and intelligence unit grew by 10.2% followed by Cloud at 6.1% and Enterprise IT by 4.6%.

IT firm Mindtree on Monday reported a 65.7 per cent rise in consolidated net profit to Rs 326.5 crore for the December 2020 quarter.

The company had posted a net profit of Rs 197 crore in the corresponding period last year, Mindtree said in a regulatory filing.

The Bengaluru-based company saw its revenue grow 3 per cent to Rs 2,023.7 crore in the quarter under review from Rs 1,965.3 crore in the year-ago period, it added.

In dollar terms, its net profit rose 59.3 per cent to USD 44.2 million, while revenue declined marginally to USD 274.1 million in the December 2020 quarter over the year-ago period.

At the end of the December 2020 quarter, the company’s active client base stood at 276, and eight new clients were added during the quarter, the filing said.

Mindtree had 22,195 employees at the end of the December 2020 quarter with trailing 12-month attrition at 12.5 per cent.

“Our third quarter has by far been the best performing in recent years backed by broad-based revenue growth of 5 per cent across our verticals and service lines, robust margin expansion of 350 bps (basis points), and a healthy order book of USD 312 million,” Mindtree CEO and Managing Director Debashis Chatterjee said.

He added that the company is witnessing strong business momentum across all verticals with a significant demand for cloud, data and analytics capabilities.

“We continue to capitalise on the evolving market dynamics with solutions that help enterprises navigate the new normal and grow their businesses.

“Thanks to the strategic focus and hard work of our Mindtree Minds, we are now well-positioned to continue delivering profitable growth,” he said.

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