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Bengaluru-based software company Mindtree Ltd. believes that the September quarter was their last as a standalone company and that their merger with L&T Infotech will be completed by the end of the year.

"We are very close to the regulatory approvals and that is why it gives us confidence to say that by the end of this calendar year, we should be done with it," MD & CEO Debashis Chatterjee told CNBC-TV18 in an interview.

Revenue of the Bengaluru-based software exporter came in at Rs 3,400.4 crore for the three-month period, up 8.9 percent compared with the previous quarter, according to a regulatory filing.

Analysts in a CNBC-TV18 poll had estimated the IT firm's quarterly net profit at Rs 482.6 crore and revenue at $416.3 million.

Net profit for the quarter increased 7.9 percent to Rs 508.7 crore.

Chatterjee mentioned that the December quarter will have a one-off integration cost of the L&T Infotech merger which may spillover into the March quarter as well. "There will be definitely some one-off costs in Q3 and possibly into Q4 but that will be one-off cost because when you do integration of the scale, there are definitely certain one-off costs which has to be taken into account," he said.

Mindtree reported its seventh straight quarter of reporting constant currency revenue growth in excess of 5 percent. The company witnessed some weakness in areas like retail, consumer goods, and manufacturing. In sectors like Communications, Media and Technology, there has been some client-specific issues. However, Chatterjee said that the company's top client in the CMT business continues to grow well.

There has also been weakness in Europe due to cross-currency headwinds. Chatterjee says that the deal pipeline in Europe is a good mix of transformation and managed services deals.

Close to 20 percent of Mindtree's revenue comes from Continental Europe along with the UK and Ireland.

Other Key Takeaways:

Anticipate certain furloughs in Q3; Too early to say if it will be higher than the past

Pricing is currently stable

Clients are talking of transformation and efficiency deals

First Published:Oct 14, 2022 5:42 PM IST