Mindtree Q4 results | Profit surges 49% on-year, revenue grows 37% YoY to Rs 2,897 crore

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26 Aug, 2025 12:21

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Mindtree, the Mumbai based mid-cap IT company, on April 18, reported a consolidated net profit of Rs 473.1 crore for the quarter ended March 2022, registering an on-year growth of 49 percent. On a sequential basis, the growth in profit is 8 percent.

The Larsen & Toubro group company had reported a consolidated profit after tax (PAT) of Rs 317.3 crore during the corresponding period a year ago. Its PAT during the last quarter stood at Rs 437.5 crore.

The revenues at Rs 2,897.4 crore for the quarter registered a growth of 37 percent over the year ago period. On a quarterly basis, the growth in revenues has been 5 percent.

The company had reported consolidated revenues of Rs 2,109.3 crore during the corresponding quarter last year. The revenues during October – December period stood at Rs 2,750 crore.

The growth driven by strong discretionary spending and new wins. BFSI and travel verticals were the growth drivers.

"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.

In dollar terms, the profit for the quarter was recorded at $62.7 million, a growth of 44.8 percent year on year and sequential growth of 7.6 percent.

The dollar revenues for the company stood at $383.8 million with an on year growth of 33.2 percent and a sequential growth of 4.8 percent.

In constant currency, the sequential revenue growth came in at 5.2 percent.

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

For the full year period, (April-March, 2022), PAT for the company was recorded at Rs 1,652.9 crore which is a growth of 49 percent from the profit of Rs 1,110.5 crore reported for FY21.

Consolidated revenues for FY22 stood at Rs 10,525.3 crore, a 32 percent rise from the revenues of Rs 7,968 crore reported for FY21.

In dollar terms the profit for FY22 stood at $221.6 million growing by 48 percent on year and by 8 percent sequentially.

Company recorded dollar revenues of $1,410.8 million, YoY growth of 31 percent.

Revenue by geography and business verticals

Growth in revenues was widespread across geographies and business verticals. North America continues to be the largest contributor to the revenues with 73.6 percent share. It witnessed an on year growth of 28 percent and a sequential growth of 5.6 percent. Continental Europe with a share of 9 percent grew the most at 69.2 percent YoY. UK and Ireland had a growth of 33.6 percent YoY and had 8.7 percent share in company’s revenues. On a sequential basis however, there was a decline of 6 percent in UK & Ireland during the quarter. APAC & Middle East region returned a growth of 51.3 percent YoY for its 8.7 percent share in revenues.

Communications, media and technology continue to be the biggest business generator for the company with a share of 43.3 percent. It witnessed a growth of 26 percent on year during the quarter. Retail, CPG and manufacturing grew by 36.5 percent while constituting 22.6 percent share in the company’s revenues. BFSI and travel, transportation & hospitality had healthy growth of 31.6 and 51.5 percent respectively.

Margins

The company reported an EBITDA (Earnings before interest, tax, depreciation and amortization) of Rs 608.3 crore for the quarter, increasing by 31.5 percent compared to the same period last year and by 2.7 percent compared to last quarter.

Its EBITDA margin for the quarter declined by 90 bps on year to 21 percent. Compared to last quarter, the decline is 50 bps.

EBIT margins however, witnessed a marginal on year improvement of 30 bps to 18.9 percent. On a quarterly basis, the EBIT margins declined by 30 bps.

According to an average of estimates of analysts polled by CNBC-TV18, EBIT was estimated at Rs 542 crore and margin at 18.8 percent for the quarter.

The company was able to improve its net margins both on the yearly and sequential basis due to lower depreciation. The net margins for the quarter improved 130 bps on year to 16.3 percent and on a sequential basis, the improvement was 40 bps.

For FY22, the net margins spiked by 180 bps to 15.7 percent compared to 13.9 percent for FY21.

Client Matrix

The company had 276 active clients at the end of March 2022 and was able to add 11 new clients during the quarter. 5 new clients were added $20 million plus category; 4 clients were added in $5 million plus bucket and 3 clients were added in $1 million plus basket. The company however, lost one client in the $10 million plus category.

The company signed total deal TCV (total contract value) of $390 million during the quarter.

Human Resource

Higher attrition rate remained a concern for overall IT companies, which came in at 23.8 percent for March 2022 quarter, against 21.9 percent in previous quarter.

The total headcount for the company stood at 35,071 employees at the end of FY22 with women employees constituting 33 percent of the total workforce.

Dividend

Mindtree has recommended a final dividend of 270 percent which works out to Rs.27/- per equity share of face value of Rs.10/- each for the financial year ended March 31, 2022.

The Mindtree stock declined Rs 141.45 (3.45 percent) to close at Rs 3,957.5 on April 18 at the National Stock Exchange. The stock has been trading lower by 6.5 percent in the past one week and has generated returns of 91.2 percent during the past one year.