Mindtree Q2 net profit grows 27.5% to ₹509 cr; revenue up 31%

The midcap IT services major Mindtree reported a net profit of 27.5% on the year-on-year (YoY) basis at ₹508.7 crore for the July to September quarter this year as compared to ₹398.9 crore in the same period last year, the company notified in a regulatory filing on Thursday. The company’s revenue from operations surged 31.5% at ₹3,400.4 crore, compared to ₹2,586 crore in the same period last year. On a sequential basis, the company’s profit surged 7.9% and revenue grew 8.9%. 

Debashis Chatterjee, chief executive officer and managing director, Mindtree says, “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.”

"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,” he adds. 

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at 20.5%, compared to 21% in the same period last year. Its profit after tax (PAT) for the September quarter stood at 15.4%, compared to the same quarter last year. Notably, for the first time, the company’s signing for H1 crossed ₹1 billion. As of September 30, 2022, the company has 276 active clients. $1 million+ clients increased by 15 totaling to 160, whereas $5 million+ clients increased by 3 totaling to 61. 

Meanwhile, IT heavyweights Infosys, HCL Tech, TCS, and Wipro also announced the September quarter results this week. All the tech majors reported growth in net profit on a YoY basis, except Wipro. While TCS reported a profit growth at 8.4% YoY ₹10,431 crore for the September quarter, Infosys' profit surged 11% to ₹6,021 crore. Wipro's profit declined 9% at ₹2,659 crore in the second quarter of this year.