Mindtree hits record high after strong Q1 results

Mindtree jumped 7.36% to Rs 2,678.45 after the IT company reported strong Q1 results after market hours Tuesday (13 July). The counter hit a record high of Rs 2,692.80 in intraday today. The stock has surged 179% from its 52-week low of Rs 963.30 hit on 15 July 2020. The IT company reported an 8.2% increase in net profit to Rs 343.40 crore on an 8.6% rise in revenues to Rs 2,291.70 crore in Q1 FY22 over Q4 FY21. In dollar terms, the company posted 7.5% rise in consolidated net profit to $46.5 million on 7.7% increase in revenues to $310.5 million in Q1 FY22 over Q4 FY21.

EBITDA in Q1 FY22 rose 0.4% to Rs 464.50 crore as against Rs 462.60 crore posted in Q4 FY21. EBITDA margin was at 20.3% as on Q1 FY22 compared with 21.9% in Q4 FY21 and 18.2% in Q1 FY21.

In Q1 FY22, Mindtree reported highest ever order book of half-a-billion US dollars, registering a growth of 34.2% QoQ. The total active clients at the end of June 2021 stood at 260, down from 270 clients at the end of March 2021.

Total employee headcount was at 27,256 in Q1 FY22 as against 23,814 in Q4 FY21. The attrition rate (last twelve months) stood at 13.7% at the end of Q1 FY22, falling from 16.6% in Q1 FY21.

Debashis Chatterjee, CEO and MD of Mindtree said, We are pleased to report a strong start to FY22 with broad-based first-quarter growth across all service lines and industry segments. For the quarter, revenues were $310.5 million, up 7.7% sequentially, and EBITDA was 20.3%, demonstrating the resilience of our business in a challenging environment. Our highest ever orderbook 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.

Mindtree is a global technology consulting and services company. It is now a Larsen & Toubro Group Company.

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