‘P. Sarojini’
Bengaluru (CWBN)_ Mindtree Limited, a global technology consulting and services company, announced on Thursday that their net profit rose 88% to INR 253.7 crore for the September 2020 quarter. It also said that they are quite confident of maintaining this growth momentum in the future as well. With the current hike in net profit as well as the net profit of INR 135 crore gained in the 2019 September quarter, they announced they will also roll out salary hikes with effect from January 1, 2021.
The L&T owned firm Mindtree saw their revenue growing marginally from INR 1914.3 crore in September 2019 to INR 1926 crore in September 2020. The company announced that this strong growth in profits was possible due to their operational efficiencies and hard work of the employees amidst the pandemic. Mindtree Chief Executive Officer and Managing Director Debashis Chatterjee told reporters in a virtual briefing that “The world is slowly emerging from the challenges caused by the pandemic…we achieved our commitment of delivering profitable growth, quarter-over-quarter, and also successfully navigating through the challenging business environment”.
He said with confident that the company’s pipeline continues to be strong and also with the board growth, the company is also seeing a healthy win ratio. He said that on the demand side, the company is currently seeing momentum as customers are not only expecting solutions to tackle near-term challenges, but also embark on a transformational journey for future growth. He added, “We anticipate growth momentum for the next quarter, despite it being a seasonally weak quarter, with revenue momentum on track and our continued focus on driving operational efficiencies”.
The CEO said that the company maintains a healthy order book of USD 694 million in first half and has a robust pipeline too. He added, “We are optimistic to continue our growth momentum in the third quarter.” In the second quarter, the company signed deals with total contract value (TCV) worth USD 303 million. He also said that the company completed its promotion cycle in the second quarter and will take over salary increments with effect from January 1, 2021. He noted that the increase will be based on the industry norms and the company will continue hiring based on the business requirements. Mindtree employed 21827 employees at the end of the September quarter with trailing 12-month attrition at 13.8 per cent.
In terms of dollar, the net profit rose 79.2 per cent to USD 34.3 million, while revenue declined by 3.7 per cent to USD 261 million in the September 2020 quarter over the year-ago period. The company’s active client base stood at 283 at the end of the September 2020 quarter and eight new clients were added during the time. The board of directors announced an interim dividend of INR 7.5 per equity share.
Overall, 77.4 per cent of Mindtree’s revenue in the September 2020 quarter was contributed by the North America market, while Continental Europe contributed 7.5 per cent, UK and Ireland gave 7.9 per cent and Asia Pacific contributed 7.2 per cent. The shares of Mindtree closed on Thursday at INR 1,427.55 apiece on the BSE, down 8.11 per cent from its previous close.
