Mindtree net rises 30% on digital push

Traditional offerings have been recast differently by automation, other forces, says chairman

Mindtree’s consolidated net profit for the first quarter ended June rose 30% to ₹1,582 million year-on-year as its global clients opt for more digitalisation and automation processes, according to a BSE filing.

“As we continue to showcase leadership in digital transformation along with our frameworks for automating core run-the-business operations, our clients are trusting us with larger and more impactful projects,” said Rostow Ravanan, CEO and MD.

‘Key role by automation’

“The long-term strategic initiatives of delivery excellence and making Mindtree a great place to work continue to be visible in our improving profitability and low-attrition rates.”“Automation is playing a significant role in modernising our technology service delivery

“We have 406 BOTs employed as of June 30 — software that acts autonomously, free from any interference... to perform a significant task which will otherwise be performed by a human,” Mr. Ravanan said.

The Bengaluru-based company’s revenue grew 20.7% to ₹16,395 million. It had 339 active clients as of June 30.

The company had a total of 18,990 employees and the attrition rate during the period was 12.2 %, according to the filing.

‘Outpacing industry’

Mindtree’s revenue grew at a compounded annual growth rate of 14.2% over the last five years against the industry average of 10.5%. Net profit for the financial year rose 36.2% year-on-year to ₹5,701 million for the financial year ended March 2018, according to the company’s annual report released on Wednesday.

“Changes in technology are reshaping our customers’ world as well as our industry,” Krishnakumar Natarajan, executive chairman, said in the report. “Traditional offerings like coding, testing, managing IT infrastructure etc., have been recast in a very different way through platforms, automation, and other forces.

“We took note of Charles Darwin’s finding — that only those who can adapt fast will survive in periods of rapid change.

“We embraced the technology revolution and led the thinking for our clients. In many cases, we paid the short term price, either by cannibalising our revenue or sacrificing margins by making investments to prepare for the changes. That call proved to be the right one.”