Mindtree Q4 net profit rises 49% to ₹473 cr

IT services company Mindtree posted a 49.1% year-on-year increase in net profit at ₹473.1 crore for the quarter ended March 31, 2022. The company had reported a net profit of ₹317.3 crore in the corresponding quarter of the previous fiscal.

Mindtree registered 37.4% growth in revenue on annual basis at ₹2,897.4 crore for the quarter under review, compared to ₹2,109.3 crore a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at ₹608.3 crore as against ₹462.6 crore in the year-ago period.

EBITDA margin slipped to 21% during March quarter of FY22 from 21.9% in the same quarter previous fiscal. Meanwhile, PAT margin increased to 16.3% from 15% during this period.

“Our sequential revenue growth of 5.2% in constant currency made this our fifth consecutive quarter of 5%-plus growth in constant currency. Our full year revenue growth of 31.1% validates our strategy to capitalise on rising demand by diversifying our services portfolio, mining customers, and broadening industry partnerships,” said Debashis Chatterjee, chief executive officer and managing director, Mindtree.

“We are proud to have delivered EBITDA margin of 20.9% and PAT margin of 15.7%, our highest in a decade. Our commitment to creating value for shareholders is reaffirmed by an EPS of ₹100.2, our highest-ever adjusted for bonuses, and a full year dividend of ₹37 per share, the highest in our history. The passion of our teams and the trust of our customers will help our endeavour to deliver profitable industry-leading growth in the coming year as well,” he added.

For the year ended March 31, 2022, Mindtree reported a net profit of ₹1,652.8 crore, compared to ₹1,110.3 crore at the end of the previous fiscal. Revenue for FY22 also jumped to ₹10,525.3 crore from ₹7,967.8 crore.

The company said its net headcount addition in FY22 was 11,200, up 47.3%. The overall employee strength of Mindtree was 35,071 professionals as of March 31, 2022. Meanwhile, trailing 12 months’ attrition rate was 23.8%.

North America remained the primary market for the company, accounting for 73.6% of revenue by geography. Continental Europe, U.K. and Ireland, and Asia Pacific and Middle East contributed 9%, 8.7% and 8.7% to the revenue, respectively, during the March quarter.

Mindtree saw 43.3% revenue coming from communications, media and technology, 22.6% from retail, CPG and manufacturing, 18.2% from BFSI, 14.4% from travel, transportation and hospitality, and 1.5% from healthcare segment.

While the number of clients in the over $50 million and over $100 million baskets remained unchanged at one each, the company added 11 new clients during the March quarter. The total number of clients at the end of the quarter under review was 276. The top 20 clients contributed 58% of the overall revenue.

The Mindtree board of directors also recommended a Final Dividend of 270%, at ₹27 per equity share of face value of ₹10 each, for the financial year ended March 31, 2022. The final dividend is subject to the approval of shareholders at the next annual general meeting. The book closure and record dates for the final dividend will be intimated in due course, it added.