Mindtree Ltd Q4 net profit up 49.1% at Rs473.1cr on smart growth in constant currency revenues

18 Apr 2022 , 08:09 PM

Mindtree Ltd reported 37.36% growth in total sales revenues for the Mar-22 quarter on consolidated basis at Rs2,897.40cr. On a sequential basis, the revenues were up by 5.36%.

In terms of verticals contributing to revenues, CMT contributed 43.3% of revenues, Retail/CPG 22.6%, BFSI 18.2% and Travel & hospitality 14.4%. In terms of regional contribution, North America contributed 73.6%, Continental Europe 9%, UK/Ireland 8.7% and APAC 8.7% of the total revenues for the fourth quarter.

Mindtree added 11 clients in the quarter with total clients standing at 276. The overall TCV stood at $390 million in Q4 with top 10 clients accounting for 44.4% of the total revenues of the company.

For the Dec-21 quarter, the consolidated operating profits were up 31.5% at Rs608.30cr. For Q4 Mindtree reported operating margins of 20.99% (lower 94 bps yoy and 54 bps qoq).

Offshore contributes to 86.3% of the total revenues while manpower utilization stood at 83.1% in the fourth quarter. However, employee attrition at 23.6% remains on the higher side, albeit lower than the 28% attrition reported by Infosys. The net headcount addition stood at 47.3% in the full FY22.

Overall order book for FY22 was up 16.7% at $1.6 billion. Due to the pressure on the profits, the ROE and the ROCE of the company remained almost constant over the sequential Dec-21 quarter.

The consolidated Profit after tax (PAT) for the Mar-22 quarter was up 49.10% at Rs473.10cr on the back of robust growth in orders and margins overall. In terms of segmental contribution to EBIT, CMT contributed over 50% of the EBIT, followed by retail/CPG.

The board of directors of Mindtree have recommended a dividend of Rs.27 per share for FY22. PAT margins improved from 15.04% in the Mar-21 quarter to 16.33% in the Mar-22 quarter. Even on a sequential basis, the net profit margins were higher by 42 basis points.

Financial highlights for Mar-22 compared yoy and sequentially

	Mindtree Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 2,897.40	₹ 2,109.30	37.36%	₹ 2,750.00	5.36%
EBITDA (Rs cr)	₹ 608.30	₹ 462.60	31.50%	₹ 592.10	2.74%
Net Profit (Rs cr)	₹ 473.10	₹ 317.30	49.10%	₹ 437.50	8.14%
Diluted EPS (Rs)	₹ 28.66	₹ 19.25		₹ 26.50
EBITDA Margins	20.99%	21.93%		21.53%
Net Margins	16.33%	15.04%		15.91%