Mindtree
Mindtree

IT firm Mindtree on Friday said its consolidated net profit rose by 53.9 per cent to Rs 317.3 crore in the March quarter on the back of strong operational efficiency, and expressed confidence in logging double-digit growth in FY22.

The Bengaluru-based company's net profit was at Rs 206.2 crore in the January-March 2020 quarter. Its revenue grew 2.9 per cent to Rs 2,109.3 crore in the said quarter from Rs 2,050.5 crore in the year-ago period.

In dollar terms, the net profit was up 53.4 per cent at USD 43.3 million, while revenue was higher by 3.5 per cent at USD 288.2 million compared to the year-ago period.

"With our sustained growth momentum, we are confident about our opportunities ahead, and the outlook for FY22. Clients appreciate the value that we create and recognise our ability to deliver transformational engagements. Our pipeline continues to be robust with a good mix of annuity deals," Mindtree Chief Executive Officer and Managing Director Debashis Chatterjee told reporters.

He added that Mindtree continues to cross-sell and upsell within and across its client base, growing its order book 20 per cent sequentially to USD 375 million.

Chatterjee noted that the company's journey of profitable growth and seamless delivery during the pandemic year has been "made possible by the resilience of Mindtree Minds, the commitment of our leadership team, and above all, the continued support of our clients".

"Being mindful of the uncertainty introduced by the pandemic, we are geared up to respond to the increased opportunities and business traction. It is our endeavour to deliver double digit growth in FY22, while sustaining EBIDTA at 20 per cent-plus levels," he said.

For the year, Mindtree delivered revenues of USD 1,076.5 million and margin expansion of 680 basis points while increasing order book by 12.3 per cent.

Mindtree Board has recommended a final dividend of 175 per cent or Rs 17.50 per equity share for the financial year ended March 31, 2021. The final dividend is subject to the approval of shareholders at the 22nd Annual General Meeting.

The results were announced after trading hours. Shares of Mindtree closed marginally up at Rs 2,067.60 apiece.

Mindtree's FY'21 net profit grew 76 per cent to Rs 1,110.5 crore while revenue was up 2.6 per cent at Rs 7,967.8 crore compared to the previous fiscal.

At the end of March, the company had 23,814 employees and its trailing 12-month attrition was at 12.1 per cent. Its active client base was at 270 as of March 31, 2021.

The company is rolling out a comprehensive COVID-19 vaccination plan in India for all its employees and their families.

"Since the last 6-7 quarters, we have launched a lot of operational efficiency programs and those constantly keep on delivering results. We have been managing our bench very well, we are making investments at places which will help us and drive growth for the future," Mindtree Chief Financial Officer Vinit Teredesai said.

He added that the growth momentum that the company has seen over the past couple of quarters, which is allowing it to manage its costs well and keep improving productivity and ensure that the cost base remains nimble and agile to sustain profitable growth.

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