Mindtree’s Q2 net profit rises 7.9% sequentially to ₹509 crore

• Mindtree’s net profit rose by 7.9% sequentially at ₹509 crore and revenue from operations grew by 8.9% at ₹3,400 crore.
• “Our robust performance in the second quarter of FY23 marked a solid first half of the year,” said Debashis Chatterjee, CEO and MD at Mindtree.
• The management said that its margin has remained healthy despite cost pressure from wage hikes.
• Attrition rate at the company has come down marginally to 24.1% in September quarter from 24.5% in the previous quarter.

Bengaluru-based Mindtree’s net profit in the September quarter rose 7.9% sequentially to ₹509 crore as compared to ₹471 crore in the last quarter. Its revenues from operations rose by 8.9% to ₹3,400 crore.

In constant currency, its revenues for the quarter stood at $422 million, up 7.2% sequentially.

The company said that with an order book of $518 million, its signings in the first half crossed $1 billion for the first time in history.

“Our robust performance in the second quarter of FY23 marked a solid first half of the year,” said Debashis Chatterjee, CEO and MD at Mindtree.

The management said that its EBIDTA margin remained healthy despite cost pressures from wage hikes.

“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,” said Chatterjee.

Ahead of its earnings, Mindtree’s share price closed 0.84% lower at ₹3,318 on October 13.
Source: Company reports

Retail, consumer packaged goods (CPG) & manufacturing segments witnessed negative growth sequentially in terms of revenue. Other than that, travel, transportation, hospitality and BFSI segment saw double digit growth from the last quarter.
On the bright side, attrition rate at the company has come down to 24.1% in September as compared to 24.5% in the previous quarter.

Mindtree’s employee base stood at 38,290 in the second quarter of FY23, which increased from 37,455 in the previous quarter.

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