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Mindtree’s second quarter net profit rises 7.9% sequentially to ₹509 crore

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  • Mindtree’s net profit increased sequentially by 7.9% to 509 crore and operating income increased by 8.9% to 3,400 crore.
  • “Our robust performance in the second quarter of FY23 marked a solid first half of the year,” said Debashis Chatterjee, CEO and MD, Mindtree.
  • Management said margin remained healthy despite cost pressure from wage increases.
  • Attrition at the company fell marginally to 24.1% in the September quarter, from 24.5% in the previous quarter.

Mindtree’s net profit, based in Bengaluru, rose sequentially by 7.9% in the September quarter to 509 crore from ₹ 471 crore in the last quarter. Operating income increased by 8.9% to 3,400 crore.

In constant currency, sales for the quarter were $422 million, a 7.2% sequentiality.

The company said with an order book of $518 million, its first-half signing exceeded $1 billion for the first time in history.

“Our robust performance in the second quarter of FY23 marked a solid first half of the year,” said Debashis Chatterjee, CEO and MD, Mindtree.

Management said the EBIDTA margin remained healthy despite cost pressures from wage increases.

“Not only did we deliver strong revenue of $422.1 million, up 7.2% sequentially in constant currency, but also kept our EBITDA margin at a healthy 21% despite wage increases across the board, driving this our seventh straight quarter with sales growth of more than 5% in constant currency and for the eighth consecutive quarter with an EBITDA margin of more than 20%,” said Chatterjee.

In anticipation of earnings, Mindtree’s share price closed 0.84% ​​lower on October 13 at ₹3,318.

Particularities Q2 FY23 Q1 FY23 Q2 FY22
Revenue ₹3,400 crores ₹3,121 crore ₹2,586 crore
Net profit ₹509 crore ₹471 crore ₹398 crore
Net margin 20.5% 21.1% 21.0%

Source: Company Reports

The retail, consumer packaged goods (CPG) and manufacturing segments experienced sequential negative growth in terms of sales. Apart from that, the Travel, Transportation, Hospitality and BFSI segment had double-digit growth from the last quarter.

Segment Revenue QoQ change
BFSIA 10.2%
Communication, media and technology 4.3%
Retail, CPG and Manufacturing -0.8%
Travel, transportation and hospitality 8.8%
healthcare 34.9%

On a positive note, attrition at the company fell to 24.1% in September, from 24.5% in the previous quarter.

Mindtree’s workforce was 38,290 in the second quarter of FY23, up from 37,455 in the previous quarter.

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