Mindtree announces first-quarter earnings with 37% increase in net profit

IT services company Mindtree Ltd. reported its first-quarter results showing a 37.3 per cent year-on-year increase in its net profit, to Rs. 471.6 crore from Rs. 343.3 crore. The Bengaluru-based company’s revenue grew by 36.2 per cent standing at Rs. 3,121 crore from Rs. 2, 291 crore on a year-on-year basis.

The company stated that its attrition rate for the past year was 24.5 per cent ​​with the headcount of 37,455 employees for the quarter which ended on June 30th. Mindtree’s had reported an attrition rate of 23.8 per cent in the previous quarter, signalling a small rise of 0.7 per cent. In comparison, TCS reported a 19.7 per cent attrition rate for the year gone in their results last week. The largest Indian IT services firm showed an increase of 2.3 per cent from 17.4 per cent attrition in the March quarter. 

The company stated in their earnings call that the awaited Larsen & Toubro Infotech (LTI) and Mindtree merger will be completed within the next six to eight months.

“We are excited to report a strong start to FY23 with robust revenue growth, solid margin, and a record order book, demonstrating our continued industry-leading growth momentum”, says Debashis Chatterjee, chief executive and managing director of the company. 

He further notes, “With revenues of $399.3 million, up 5.5% sequentially in constant currency on the back of a healthy demand for our digital capabilities, this was our sixth consecutive quarter of more than 5% revenue growth in constant currency. Our highest-ever order book of $570 million reflects the relevance of our value proposition in delivering business-critical transformation at scale.”