Mindtree Q4 results: Net profit rises 49% to Rs 473 cr, final dividend declared

IT firm Mindtree on Monday reported a 49 per cent year-on-year rise in consolidated net profit at Rs 473.1 crore for the quarter ending 31 March, 2022 on the back of robust demand and aggressive customer mining. The company had posted a net profit of Rs 317 crore in the same quarter last year.

The Bengaluru-based company saw its revenue grow 37 per cent to Rs 2,897 crore in the quarter under review from Rs 2,109 crore in the year-ago period.

In dollar terms, net profit rose nearly 45 per cent YoY to $62.7 million, while revenue increased 32.2 per cent to $383.8 million in the said quarter over the year-ago period.

The company also announced that that its board has recommended a final dividend of Rs 27 per share of face value of Rs.10 each for the financial year ended March 31, 2022. The final dividend is subject to the approval of shareholders at the 23rd Annual General Meeting.

The company said it has 276 active clients as of March 31, 2022. 

In terms of employees, Mindtree has 35,071 professionals as of March 31, 2022, trailing 12 months attrition was 23.8 per cent.

“Our industry-leading growth through a year of rapid business and technology shifts demonstrates the relevance of our value proposition in reimagining businesses and driving digital transformation at scale,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree. 

“Our sequential revenue growth of 5.2 per cent in constant currency made this our fifth consecutive quarter of 5 per cent plus growth in constant currency. Our full year revenue growth of 31.1 per cent validates our strategy to capitalize on rising demand by diversifying our services portfolio, mining customers, and broadening industry partnerships," he added. 

Chatterjee also noted that the company's EBITDA margin of 20.9% and PAT margin of 15.7%, highest in a decade. "Our commitment to creating value for shareholders is reaffirmed by an EPS of Rs 100.2, our highest-ever adjusted for bonuses, and a full year dividend of Rs 37 per share, the highest in our history. The passion of our teams and the trust of our customers will help our endeavour to deliver profitable industry-leading growth in the coming year as well," he said.

Shares of Mindtree on Monday closed 3.44 per cent lower at Rs 3,956.15 apiece on BSE mostly on the back of construction giant Larsen & Toubro's (L&T) two portfolio software companies, L&T Infotech and Mindtree, mulling a merger as soon as next week, according to a Bloomberg report. 

However, the two IT service companies have offered no comments on the reported development. L&T had acquired 61 per cent stake in Mindtree in 2019 for over Rs 10,000 crore. L&T also owns 74 per cent stake in L&TI. The combined market capitalisation of both the tech firms is nearly Rs 1.66 lakh crore.

The proposed deal could be a share-swap transaction, although it mentions that the merger could even fall part or suffer delay, quoting one of its sources, Bloomberg's report stated, quoting sources.