ETtechMindtree's first quarter net profit jumped 37.3% to ₹471.6 crore, while revenue grew 36.2% year on year to ₹3,121 crore, exceeding analysts' estimates.
A strong recovery in its travel and tourism vertical following the waning of the Covid-19 pandemic and better operational performance led to the robust growth, the company said on Wednesday.
An ET poll of analysts had forecast a 35.1% increase in net profit and a 34% rise in revenue. The attrition rate for the quarter rose to 24.5% from 23.8% in the previous quarter due to the overall talent crunch being faced by the IT industry. Analysts said 's operating margins and recorddeal wins surpassed expectations.
Operating margin stood at 19.2%, expanding 30 basis points sequentially due to better project execution strategy, the company said. It was 17.7% in the year-ago period.
The company reported a total contract value (TCV) of $570 million in the April-June quarter, its highest ever. The metric stood at $390 million last quarter and $504 million in the same period last year.
"Digital transformation is not necessarily constrained by market cycles. While they momentarily affect the pace of decision making, they are unlikely to stall the large wave of business critical, tech modernisation spends," said Debashis Chatterjee, chief executive and managing director of Mindtree in a post-earnings media call. The company is "cautiously optimistic" on future opportunities and macro factors despite no change in client behaviour, he added.
The tapered spending in a few retail and Consumer Packaged Goods (CPG) client segments along with the ramp down by a client sequentially dragged down the segment by 8.7%, Chatterjee said. This is the first quarterly results announcement following the amalgamation of Mindtree and Larsen & Toubro Infotech in May.
The firms will now be housed under the Larsen & Toubro group with a combined market capitalisation of over $3.5 billion. This is the biggest merger in the Indian IT sector since the $2.7 billion Satyam-Tech Mahindra one in 2013. The merger is expected to be completed by December.
"Performance is good on all fronts. Strong deal wins, healthy hiring momentum and strong revenue growth despite weakness in retail point towards strong near-term demand," said Aditi Patil, research associate at Prabhudas Lilladher, in a note.
A strong recovery in its travel and tourism vertical following the waning of the Covid-19 pandemic and better operational performance led to the robust growth, the company said on Wednesday.
An ET poll of analysts had forecast a 35.1% increase in net profit and a 34% rise in revenue. The attrition rate for the quarter rose to 24.5% from 23.8% in the previous quarter due to the overall talent crunch being faced by the IT industry. Analysts said 's operating margins and recorddeal wins surpassed expectations.
Operating margin stood at 19.2%, expanding 30 basis points sequentially due to better project execution strategy, the company said. It was 17.7% in the year-ago period.
The company reported a total contract value (TCV) of $570 million in the April-June quarter, its highest ever. The metric stood at $390 million last quarter and $504 million in the same period last year.
"Digital transformation is not necessarily constrained by market cycles. While they momentarily affect the pace of decision making, they are unlikely to stall the large wave of business critical, tech modernisation spends," said Debashis Chatterjee, chief executive and managing director of Mindtree in a post-earnings media call. The company is "cautiously optimistic" on future opportunities and macro factors despite no change in client behaviour, he added.
The tapered spending in a few retail and Consumer Packaged Goods (CPG) client segments along with the ramp down by a client sequentially dragged down the segment by 8.7%, Chatterjee said. This is the first quarterly results announcement following the amalgamation of Mindtree and Larsen & Toubro Infotech in May.
The firms will now be housed under the Larsen & Toubro group with a combined market capitalisation of over $3.5 billion. This is the biggest merger in the Indian IT sector since the $2.7 billion Satyam-Tech Mahindra one in 2013. The merger is expected to be completed by December.
"Performance is good on all fronts. Strong deal wins, healthy hiring momentum and strong revenue growth despite weakness in retail point towards strong near-term demand," said Aditi Patil, research associate at Prabhudas Lilladher, in a note.
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