Mindtree Q2 profit up 88%, growth in IT industry

Mindtree Ltd posted an 88% year on year wise rise in net profit to Rs 253.7 crore for the second quarter-ended September on the back of operational efficiencies and improved utilization.

The Bengaluru based IT services company owned by Larsen & Toubro (L&T) posted a revenue for the second quarter at ₹1,926 crore, marginally up 0.9% sequentially and 0.6% on an annual basis.

“The world is slowly emerging from the challenges caused by the pandemic…we see a strong pipeline and broad-based growth,” said Debashis Chatterjee, chief executive officer and managing director, Mindtree.

The company added eight new clients during the quarter, making the number of active clients to 283 as of the September quarter.

The attrition rate came down to 13.8% from 16.6%  in the previous quarter. The company said it will give salary increments to its employees from 1 Jan 2021.

On Wednesday, Infosys Ltd indicated growth after covid scenario and it shows the IT services sector is reviving.

Cross-town competitor Wipro Ltd too this week provided a sequential revenue growth guidance of 1.5-3.5% for the third quarter, on the back of improvement in demand environment and a robust deal pipeline.

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