Mindtree spurts after Q2 PAT rises 8% QoQ to Rs 509 cr, order book at $518 mn

Mindtree rallied 3.64% to Rs 3,444.50 after the L&T Group company's consolidated net profit jumped 7.9% to Rs 508.7 crore on 8.9% rise in revenue to Rs 3,400.4 crore in Q2 FY23 over Q1 FY23.

As compared to Q2 FY22, the IT company's consolidated net profit and revenue increased by 27.5% and 31.5%, respectively.

Profit before tax rose by 6.59% quarter on quarter (QoQ) and jumped 25.32% year on year (YoY) to Rs 666.7 crore in quarter ended 30 September 2022.

EBITDA improved to Rs 715.7 crore in Q2 FY23, registering a growth of 8.8% QoQ and 34.9% YoY. EBITDA margin stood at 21% in Q2 FY23 as compared with 21.1% in Q1 FY23 and 20.5% in Q2 FY22.

The company's employee benefit expense grew by 10.46% QoQ and 30.87% YoY to Rs 2,047.4 crore in Q2 FY23.

Total headcount as on 30 September 2022 was at 38,290. The trailing 12-month attrition rate at the end of the quarter stood at 24.1% as against 24.5% in Q1 FY23 and 17.7% in Q2 FY22.

The company had a healthy order book of $518 million, up 44% YoY in Q2 FY23. H1 total contract value (TCV) crosses $1 billion.

The IT firm had 276 active clients as of 30 September 2022. It added 15 new clients in the $1 million+ category, taking the total to 160. The number of clients in the $5 million+ category increased by 3, taking the total to 61.

The company's free cash flow stood at Rs 277.6 crore in Q2 FY23 as against Rs 399.7 crore in Q1 FY23 and Rs 279.1 crore in Q2 FY22.

In dollar terms, Mindtree registered a growth of 4.6% in consolidated net profit to $63.1 million on a 5.7% rise in revenue to $422.1 million in Q2 FY23 over Q1 FY23.

Debashis Chatterjee, chief executive officer and managing director of Mindtree, said, Our robust performance in the second quarter of FY23 marked a solid first half of the year. We not only delivered strong revenues of $422.1 million, up 7.2% sequentially in constant currency, but also 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.

He further added, Notably, with an order book of $518 million, our H1 signings crossed $1 billion for the first time in our history, thanks to our ability to help our clients address digital transformation's dual objectives of revenue maximization and cost optimization. We owe our consistent profitable growth to the confidence that our clients and partners have placed in our vision, and to the passion of our more than 38,200 talented professionals who live and breathe that vision every day.

Mindtree, a Larsen & Toubro Group company, is a global technology consulting and services company.

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