Business

Mindtree’s Q3 net rises 66%; healthy deal pipeline seen

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Mindtree Ltd, posted a 66% increase in fiscal third quarter profit compared with the same period of the previous year on the back of improvement in operational efficiencies.

On a sequential basis, net profit rose 28.7% to 326.5 crore. The Bengaluru-based IT services company’s revenue rose 5% to 2,023.7 crore from the preceding three months, driven by broad-based growth across verticals and service lines.

Dollar revenue grew 5% sequentially to $274.1 million. The operating margin widened 350 basis points to 23.1% in the December quarter from 19.6% in the preceding three months.

“We are witnessing strong business momentum across all verticals with significant demand for cloud, data, and analytics capabilities. We continue to capitalize on the evolving market dynamics with solutions that help enterprises navigate the new normal and grow their businesses,” said Debashis Chatterjee, chief executive and managing director of Mindtree, which is owned by Larsen & Toubro Ltd.

The order book grew 51% from a year earlier to $312 million in the December quarter. The company added eight new clients, taking the total number of active clients to 276 at the end of the December quarter.

“The deal pipeline remains healthy in the fields of customer success, data, and cloud where clients are making discretionary spends,” Chatterjee said.

In line with the industry trend, the attrition rate fell to 12.5% from 13.8% in the preceding three months. The total number of employees as of 31 December stood at 22,195.

Mindtree said all campus offers had been honoured and the last batch is expected to join in February. “Hiring will continue according to the demand,” Chatterjee said.

“Growth outlook of the top clients, the pace of recovery in travel and hospitality vertical, and update on client diversification efforts are among key factors to watch out for,” said Suyog Kulkarni, an analyst at Reliance Securities

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