Mindtree Jul-Sep net profit down 34.6 pc to Rs 135 cr

New Delhi: IT firm Mindtree on Wednesday reported a 34.6 per cent decline in consolidated net profit at Rs 135 crore for the quarter ended September 30, 2019.

The company had posted a net profit of Rs 206.3 crore in the same period last year, Mindtree said in a regulatory filing. The Bengaluru-based company saw its revenue grow 9.1 per cent to Rs 1,914.3 crore in the quarter under review from Rs 1,755.4 crore in the year-ago period, it added.

In dollar terms, the net profit declined 34.1 per cent to USD 19.2 million, while revenue increased 10 per cent to USD 271 million in the said quarter over the year-ago period.

In constant currency terms (eliminating currency fluctuation from financial performance), revenue was up 3.2 per cent sequentially and 11.1 per cent year-on-year (y-o-y). Mindtree's second quarter performance of double digit y-o-y revenue growth reflects the company's client centricity, employees' winning spirit and innovation, Mindtree CEO Debashis Chatterjee said.

"We stay committed in strengthening our execution to invest in growth and drive shareholder value," he added. In July this year, Mindtree, in a regulatory filing, had said that Larsen and Toubro (L&T) had "acquired control" of the company with a 60.06 per cent stake and had been categorised as promoter.

At the end of the September quarter, the company's active client base stood at 343. It had 21,267 employees at the end of the second quarter with trailing 12-months attrition at 16.5 per cent. Its digital business grew 18.8 per cent y-o-y, and the company recorded a 13.3 per cent y-o-y growth in total contract value in the quarter under review.

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Free Press Journal