Mindtree shares rise over 4% on Q2 results

Shares of IT services provider Mindtree rose as much as 4.4% to Rs 3,472.30 in Thursday intra-day after it reported a 31.5% rise in consolidated revenue for the September quarter to Rs 3,400 crore, and the net profit increased 27.5 per cent to Rs 509 crore.

Both its top line and bottom line were above the ET Now poll estimates of Rs 3,320 crore and Rs. 476 crore, respectively.

The revenue from North America grew 29.4% on-year in the quarter while that from Continental Europe dipped 6.6%. The decline in revenue was steeper in the UK and Ireland at 27%.

The earnings before interest and tax (EBIT) margin expanded 90 basis points on-year to 19.1%. Sequentially, it has marginally dipped 10 bps.

TCV deal wins of the company for the quarter grew by a sharp 44% on-year to $518 million. With this, Mindtree has crossed $1- billion in deal wins in the April-September period.

In terms of industries, BFSI continued to lead growth for the company. This vertical saw over 33% on-year growth. Communications and hospitality verticals also registered strong double-digit growth, but retail and manufacturing saw a double-digit fall.

In the reported quarter, the L&T group company added eight clients, though this was lower than the 13 additions in Q1. The utilisation rate marginally dipped sequentially to 80.7% for the company. Mindtree also managed to bring down attrition during the quarter. The attrition rate was down to 24.1% in Q2 from 24.5% in Q1.

At 11.48 am, the scrip was trading 3.53% higher at Rs 3,440.75 over its last day’s closing price of Rs 3,323.5 a piece. However, the stock has fallen 13% in the last six months while dropping 29% year-to-date.