Explore Now
NEW DELHI: At least 10 smallcap and midcap companies have seen expansion in profit margins for four straight quarters now. For some of them, the margin expansion came despite a rise in raw material cost. The managements of these companies are sounding confident of sustaining the trend.
MindTree said its PAT margin improved to 16.13 per cent in December quarter from 13.17 per cent in September quarter, 11.15 per cent in June quarter and 10.05 per cent in March quarter. Over the last four quarters, PAT margin for this IT firm has risen 610 basis points over December 2020's 10.02 per cent.
Analysts said IT company's margins are industry-leading in the midcap space, led by revenue growth, all-time high utilisation and sustained high offshoring. The company management is confident of sustaining Ebitda margins at nearly 20 per cent. Prabhudas Lilladher is expecting the company to clock Ebitda margins of 19.6 per cent in FY22 and 19.5 in FY23.