How did you find the Q4 results of Mindtree announced later on Monday?

For the fourth quarter of FY22 ended Mar-22, Mindtree reported 37.4% growth in total sales at Rs.2,897 crore. CMT led the charge and contributed 43.3% of revenues followed by Retail/CPG at 22.6% and the more prominent BFSI space at 18.2%. Geographically, North America accounted for 73.6% of total revenues followed by EU at 9% and UK/Ireland 8.7%. Mindtree added 11 clients in Q4 taking the total tally to 276 clients while Q4 TCV (total contract value) was $390 million.

Let me now turn to the operating profit performance of Mindtree for Q4. Operating profits were up 31.5% at Rs.608.30 crore implying 20.99% operating margins. Like for other IT companies, employee attrition at 23.6% was a worry. Overall order book for FY22 surged by an impressive 16.7% at $1.6 billion. However, on account of the pressure on the operating profits, the ROE and the ROCE of Mindtree Ltd remained almost constant compared to the sequential Dec-21 quarter.

For Q4 FY22, the net profits were up by 49.1% at Rs.473.10 crore helped along by robust growth in orders and client margins overall. CMT (communications, media, technology) alone contributed over 50% of the EBIT. The other major contributor to EBIT was retail/CPG. The Mindtree board recommended a dividend of Rs.27 per share for FY22. PAT margins improved from 15.04% in Mar-21 quarter to 16.33% in Mar-22 quarter. Even on sequential quarter-on-quarter basis, net profit margins were higher by 42 basis points.