Mindtree Q1 profit up 37.3% to ₹471 cr

IT services firm Mindtree has reported a 37.3% growth in profit for the April-June quarter of Q1 FY23 at ₹471.6 crore as compared to ₹343.4 crore profit during Q1 FY22, primarily due to a decent growth in revenue, margin and order book. The company's revenue from operations during the said quarter grew 36.2% to ₹3,121.1 crore. The revenue during the same period last year was ₹2,219.7 crore.

Mindtree's EBITDA (earnings before interest, taxes, depreciation and amortisation) for the June quarter stood at ₹658.1 crore, versus ₹464.5 crore during Q1 FY22, a growth of 41.7%, a stock exchange filing by Mindtree shows.

In dollar terms, Mindtree's profit rose 29.7% to $60.3 million in Q1 FY23 from $46.5 million during Q1 FY22. The company's revenue also rose 28.6% to $399.3 million from $310.5 million during the same period last year.

As of Q1 FY23, Mindtree's free cash flow stands at ₹399.7 crore as compared to ₹97.3 crore during Q1 FY22. As of June 30, 2022, the tech service company's order book was $570 million, up 13.1% YoY. It added 3 clients in the $10 million+ band and 4 in the $20 million+ category. Its total workforce stood at 37,455 as of June 30, 2022, and trailing 12 months attrition was 24.5%.

"With revenues of $399.3 million, up 5.5% sequentially in constant currency on the back of healthy demand for our digital capabilities, this was our sixth consecutive quarter of more than 5% revenue growth in constant currency,” says Debashis Chatterjee, chief executive and managing director, Mindtree.

The Mindtree board, at its meeting held today, granted 28,124 stock options to its identified employees under the Mindtree Employees Stock Option Plan 2021. The Mindtree stock closed 2.01% or 57.3 points at ₹2,911 on the NSE today. However, the stock has declined about 39.88% in the year-to-date period.

Larsen & Toubro (L&T) in May had announced a merger between two of its publicly traded software companies -- L&T Infotech and Mindtree -- to create a large-scale IT services provider exceeding $3.5 billion. The merger was a share swap deal at a ratio of 73 shares of LTI for every 100 shares of Mindtree. Parent company L&T holds 68.73% stake in LTI after the merger.

Among the deals won by Mindtree during Q1 FY23 were a digital product development project from an U.S.-based airline; a digital transformation contract from a healthcare tech provider; services deal from a hyper-scaler; and a cloud, IT infrastructure and security project from a specialty insurance and reinsurance company.