Mindtree Q2 results: Net profit grows 19% QoQ; Company declares an interim dividend of 75%

IT services firm Mindtree on Thursday reported a net profit of Rs 253.7 crore for the quarter ended September, a rise of 87.9 per cent from a year ago. On the other hand, the net profit rose by 19.1% from the previous quarter. The Larsen & Toubro-owned firm had reported a net profit of Rs 135 crore in the same quarter a year ago. Its revenue rose 0.6 per cent on a year-on-year (YoY) basis to Rs 1,926 crore.

“I am pleased and encouraged with our performance in delivering a broad-based growth with revenue of $261 million and EBITDA of 19.6 per cent for the quarter,” said Debashis Chatterjee, chief executive officer and managing director, Mindtree. “Our approach of redefining possibilities in the new normal for businesses enabled us to deliver balanced H1 performance. This has helped to reinforce confidence on our strategy to build on existing strengths and drive profitable growth by being the business transformation partner for our clients, developing future-ready talent and delivering value to all our stakeholders,” he, further, added.

The company also declared an interim dividend of Rs 7.5 per share.

In US dollar terms, the company reported a net profit of $34.3 million; a growth of 79.2% on a YoY basis. It also saw a 21.5% on a quarter-on-quarter (QoQ) basis. It had 21,827 employees at the end of September, down from 21,955 at the end of June. Mindtree also said that its trailing 12-month attrition stood at 13.8 per cent.

The share of the revenue from its biggest market North America declined. It constituted 77.4 per cent of the total revenue compared with 79 per cent in the June quarter. The revenue share from Asia-Pacific, also, dropped.

Q2 deal wins with leading global clients:

For a global CPG client, Mindtree has been chosen as a strategic partner for digital transformation. Mindtree will provide managed services to maintain digital platforms, create digital assets. It will also provide insights for real-time analytics for the timely decision-making process. The IT major expanded its engagement with a leading national bank in the US. It will its strategic application services partner to streamline its processes, manage and optimize technology applications, and accelerate its business transformation journey

Mindtree also won a multi-year contract with a Swedish medical solutions company to provide SAP application support and will migrate the customer’s on-premise SAP to Microsoft Azure to enable platform-led DevSecOps operating model. For a UK’s leading consumer electronics retailer, Mindtree will deliver the End User services by using Voice bots, Augmented reality, Virtual reality ( AR/VR ) capabilities to support remote stores and employees.