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Shares of Mindtree surged 9 per cent to hit a new high of Rs 2,721 on the BSE in intra-day trade on Wednesday after the information technology (IT) consulting and services company reported a healthy set of numbers for the quarter ended June 2021 (Q1FY22).
Mindtree reported a net profit of Rs 343.4 crore for Q1FY22, an increase of 61.2 per cent year-on-year (YoY). Sequentially, profits grew 8.2 per cent. Broad-based growth across verticals and geographies saw the company’s revenue rise by 20.1 per cent YoY at Rs 2,291.7 crore for the quarter. Quarter-on-quarter (QoQ), 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. READ HERE
Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin was at 20.3 per cent, down 166 basis points (bps) QoQ, mainly led by headcount addition. The deal pipeline increased 34.2 per cent QoQ (up 28.9 per cent YoY) to US$504 million. The company added 3,442 employees in the quarter. Offshore effort mix increased 60 bps QoQ to 83.5 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 the third consecutive 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 is helping us drive profitable and sustainable growth, Chatterjee said, adding that 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.
"The company’s QoQ revenue growth could be one of the best among its large-cap and mid-cap peers. Strong Q1, healthy deal pipeline and employee addition indicate robust growth in FY22E. In addition, despite second selective wage hike Mindtree expects to maintain margins above 20 per cent. Hence, we have a positive view on the stock," ICICI Securities said in a note.
