Mindtree Q2 net profit rises 27%, beats estimates on strong order wins

Mindtree Ltd reported a 27.5% jump in second-quarter earnings on Thursday, as the Larsen & Toubro Ltd-backed Indian IT services provider secured more outsourcing orders.

India's outsourcing industry made a windfall from the pandemic-led boom in demand for technology, as businesses spent billions of dollars to digitize their IT infrastructure.

"With an order book of $518 million, our H1 (first half) signings crossed $1 billion for the first time in our history," Chief Executive Officer Debashis Chatterjee said in a statement.

Mindtree's net profit increased to Rs 509 crore ($61.88 million) in the second quarter ended Sept. 30 from Rs 399 crore a year earlier.

Analysts on average had expected the company to report a net income of Rs 482 crore, according to IBES data from Refinitiv.

Mindtree's revenue from operations surged 31.5% from a year earlier to Rs 3,400 crore, led by strong growth in the communications, media and technology business.

Revenue from this division, its largest, climbed to Rs 1,479 crore from about Rs 1,100 crore a year ago.

Meanwhile, overall revenue from operations increased 5.7% sequentially to $422.1 million on the back of a weakening rupee.

The company, which is in the process of merging its business with group company L&T Infotech, also said attrition in the last 12 months dipped to 24.1% from 24.5% in the first quarter but still above the 17.7% it recorded last year.

($1 = 82.2600 Indian rupees)