Mindtree revenue up 22.6% to $180.3 million in Q2

“Our recent strong deal wins and strategic acquisitions will fuel growth and enhance our leadership in the digital space”, Krishnakumar Natarajan, CEO and managing director of Mindtree said in a statement. Total revenue increased 31.5 per cent from Rs 888.6 crore for Q2 of previous year. “A stellar quarter on all fronts”.

This is the second consecutive quarter where company has registered strong growth in revenues, which came as a relief after the company reported flat revenues in the March quarter due to the delay in the commencement of two large projects. While Bluefin is a UK-based IT solutions provider specializing in SAP HANA solutions, Relational is a US-based company focused on technology services to the consumer packaged goods industry. October to March is considered seasonally weak for outsourcers because of furloughs and holidays in key markets of USA and Europe. Also, there is a European client scaling down… Despite these headwinds, we expect the quarter to be better than Q3 past year.

“In a stance similar to Infosys, Mindtree remains muted in terms of its expectations for 2H, despite $105 million wins in Digital, which see a quicker conversion to revenues”, said Motilal Oswal brokerage. “Digital spending is no more discretionary in nature and we are ready to take on the big boys of digital, Natarajan said in an earnings call with reporters”.

Expenses rose 33.7% to Rs 9,846 million in comparison with final yr resulting from greater worker advantages. Bengaluru-based Mindtree gave increments to 60% of its workforce during the quarter and plans to provide increment to another 28% in the current quarter.

Shares of IT firm Mindtree today surged by over 5 per cent after the company posted 15.1 per cent rise in net profit for the September quarter, giving a growth guidance of 12-14 per cent despite a traditionally slow third quarter. Attrition dropped to 17.1% from 18.4% on a sequential foundation.