Mindtree, a global technology services and digital transformation company, announced its consolidated results today for the first quarter-ended June 30, 2020.
Year on year, Mindtree saw it’s net profits rise 129.8 % to ₹ 213 crore for the quarter.
For the same period, the IT services company saw it’s revenues grow 4.1 % to ₹ 1,908.8 crore.
“We closed the quarter with a healthy order book of USD 391M despite the global headwinds due to Covid-19 pandemic. Our unwavering focus on operational efficiencies has helped us to post a healthy EBITDA of 18.2%,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree. “With our client-first approach, future-ready talent coupled with increase in digital demand, we are confident to strengthen our position in the market and drive profitable growth in these unprecedented times,” he added.
According to Mindtree, in terms of order book, Q1 has been a satisfying quarter. Against the backdrop of a very challenging business environment globally, our order book continues to be healthy, we continue to renew as well as gain market share within our portfolio.
Mindtree currently has 21,950 minds, as it calls its employees, as on June 30th. During Q1, the company added 740 minds through direct and virtual onboarding. There was a reduction in increase in hiring to 16.6% from 17.4% last year. Mindtree minds have spent 680,000 hours on learning, from 70,000 a year ago. “We will hire, but carefully. We have honoured all offers and we will stick to our bench policy and we are not planning any layoffs. As part of our cost optimisation plan, we have significantly reduced subcontracting,” Chatterjee said.
“From the near-term perspective, we continue to see uncertainty in the travel sector, but we are seeing demand in CMT, and RCM segments, though we are seeing a temporary pause, but conversations are back and we are seeing traction, although decision cycles are delayed. We expect our revenue in Q2 to be better. We will continue to grow and also continue to drive operational efficiency.”
Mindtree said travel accounts for 16% of its revenues, which led to a 9% decline in revenues. Travel alone witnessed a 40% decline in revenues.
Commenting on the outlook for travel, he said, “The bulk of the hit has been taken in Q1 and we don’t see recovery in the immediate future; recovery will be slow and Q2 will be better.”
