Mindtree Ltd shares have surged nearly 6 per cent on Tuesday, following robust December quarter results. The company reported a 28.7 per cent quarter-on-quarter rise in its consolidated net profit to Rs 326 crore for October-December, backed by growth across verticals and robust margin expansion, along with a strong order book. The Mindtree stock traded at Rs 1,678.10 apiece, up 1 per cent from its previous close, while the benchmark Sensex was up 1.3 per cent at 49,207.
Consolidated revenue grew 5.1 per cent sequentially to Rs 2,023.7 crore during the quarter under review, while dollar revenue rose to $274.1 million. Profit was at a record $44.2 million.
EBITDA grew 23.7 per cent to Rs 467.9 crore. Mindtree won deals worth $312 million during the reporting quarter, pushing the year-to-date total deal value to over $1 billion. It had 276 active clients as of the end of December, with eight new clients added during the quarter.
Analysts at Emkay Global Financial expect revenue growth trajectory to sustain in the coming quarters based on demand uptick across verticals and solid deal pipeline.
“The company is seeing very good traction across its four service offerings and with the increased pace of discussion with the clients, it hopes to see better deals conversion. Margins in Q4 will have headwinds due to wage hike (~250bps QoQ); however, management believes that it has enough levers in place to absorb some of the revenue headwinds. It expects to deliver an EBITDA margin of more than 20% in the coming quarters,” the brokerage firm said in its post-earnings report.
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