Mindtree Share Q3 Results

Mindtree reported 35.89% growth in total revenues at Rs.2,750 crore for the Dec-21 quarter. The Americas accounted for 77.2% of revenues while the balance 23% was split between Continental Europe, UK and APAC. During the quarter, Mindtree added 2 clients of $5 million plus value and 3 clients of $10 million plus value.

Operating profits at Rs.592 crore saw subdued growth due to higher employee costs and sub-contracting expenses. Operating margins fell from 23.12% in Dec-20 quarter to 21.53% in Dec-21 quarter. Net profits for the Dec-21 quarter were at Rs.438 crore, up by 34% YoY for the Dec-21 quarter.

PAT margins narrowed from 16.13% in the Dec-20 quarter to 15.91% in the Dec-21 quarter and could have bene deeper had it not been for the other income. The concern is the attrition rate at above 22%. The board has declared a final dividend of Rs.17.50 per share.

How did the stock react on 14 January?

On 14 January, the day after the results, the stock of Mindtree closed 4.18% lower at Rs.4,546. The fall was largely on account of the narrowing of the operating margins and higher operating costs, but largely due to the spike in attrition. Traditionally, the attrition of Mindtree had been around 13%, which had gone up to 17% in Sep-21 quarter and is up to above 22% in the Dec-21 quarter.

On 14th January, the stock touched a low of Rs.4,477 and a high of Rs.4,675. In the last one year, the stock had touched a 52-week high of Rs.5,060 and a 52-week low of Rs.1,550. The trading volumes on 14th January the stock of Mindtree traded 25.19 lakh shares valued at Rs.1,143 crore. It was the seventh most actively traded stock on the NSE in terms of traded value on 14th January.

As on the close of Friday, the stock of Mindtree had a total market cap of Rs.74,904 crore and a free float market cap of Rs.29,213 crore.