Mindtree Q1 net profit rises 61% to Rs 343 cr; revenue up 20%

In dollar terms, Mindtree's revenue grew 7.7% sequentially and profit was up by 7.5%

IT firm Mindtree on Tuesday reported net profit at Rs 343.4 crore for the quarter ended June 30, 2021, an increase of 61.2 per cent year-on-year, and sequentially profits grew 8.2 per cent. A broad based growth across verticals and geographies saw the company’s revenue rise by 20.1 per cent at Rs 2,291.7 crore for the quarter. Sequentially, the company’s revenue was up 8.6 per cent.

In dollar terms, Mindtree’s revenue grew 7.7 per cent sequentially and profit was up by 7.5 per cent. 

“We are pleased to report a strong start to FY22 with broad-based first-quarter growth across all service lines and industry segments. We are confident of doing an industry leading growth momentum. In fact this will be third concecutive quarter where we have seen 5 per cent sequential growth,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree.

“Our highest ever order book of $504 million affirms that the focused execution of our strategy and our client-centricity in re-imagining business models for the digital era are helping us drive profitable and sustainable growth. We are proud of the passion and perseverance with which Mindtree Minds have continued to deliver value to our clients and exceed their expectations despite difficult conditions,” he further added. 

The company saw a net addition of 3,442 associates during the quarter. Mindtree also reported attrition of 13.7 per cent for the quarter, higher from the 12.1 per cent the company reported in Q4FY21. The company also said that it would be giving salary hikes to some percentage of its employee base. On rising attrition Chatterjee said: "The supply side situation we have managed very well. We have also increased our fresher intake. 

In terms of growth from geographies, continental Europe led the growth with a QoQ growth of 30.4 per cent, followed by the US, which grew 7.7 per cent and APAC and Middle East were flat with an increase of 0.7 per cent. However, the company reported a drop of 4.7 per cent in UK and Ireland. 

In terms of verticals, travel, transport,logistic and hospitality led the growth that was up 13.1 per cent qoq, followed by retail, consumer products and manufacturing that grew 7.7 percent. BFSI which was slow in the past few quarters grew 6.4 per cent.