Last updated: 13 Jul, 2021 | 03:49 pm
Net Profit beats estimates: Mindtree reported a 8.2% sequential increase in its Q1 net profits to Rs 343.4 crore which is higher than the analysts’ estimates. Analysts earlier predicted an overall net profit to nearly Rs 330 crore. In dollar terms, net profit rose by 64.7% to $46.5 million On a yearly basis there is a 61.2 % rise in its profits.
Revenue growth: The company has reported a rise of 8.6% on-quarter growth in revenue to Rs 2,291.7 crore for the quarter ended June 2021. Revenue in dollar terms increased 7.7% on-quarter to $310.5 million during the same period. The year-on-year growth in revenue was at 20.1% in rupee terms, and 22.6% in dollar terms. Customer success and Enterprise IT services made up more than 65% of total revenue.
EBIT margins: The company’s EBIT margins have come under pressure in the latest quarter. EBIT margin declined 90 bps QoQ to 17.7% while the EBITDA margins declined to 20.3% in Q1FY22.
Order book: The company recorded the highest ever order book of half-a-billion US dollars; growth of 34.2% QoQ basis. This is a positive sign looking forward. The focused execution of their strategy and client-centricity in re-imagining business models for the digital era are helping them drive profitable and sustainable growth.
Mindtree quarterly results review
Mindtree earnings have come in higher than street estimates in the Apr-Jun 21 period, aided by strong revenue growth across all service lines and industry segments. Also the company has continued to report strong deal wins and have recorded the highest ever Order Book of over a half a billion dollars. However, the margins have come under pressure in the latest quarter, and lag larger peers like Infosys and TCS.
While the ongoing pandemic has affected various businesses, it has forced a tectonic shift in business processes to move towards greater digitization. This has provided a good opportunity for the IT industry. The management is quite optimistic about its growth in near future.