Business

IT major Mindtree joins $1-billion club

Twenty years after it was founded, mid-tier IT firm Mindtree crossed $1 billion in revenue during the fiscal ended March 31, 2019.

Amid a hostile takeover bid from Larsen & Toubro, the board of directors of Mindtree has declared an interim dividend of 30% (₹3 per share that will be paid before May 10).

The board also recommended a final dividend of 40% and special dividend of 200% (₹20 per equity share of face value of ₹10 each) to celebrate the twin achievements of exceeding $1 billion annual revenue milestone and the company turning 20.

For the payout of the final and special dividends, the company will seek shareholders’ approval in June-July period, after L&T’s open offer closes on May 27.

The company has 16.4 crore shares and the total payout from interim and special dividend will be ₹530 crore, including taxes (per share value of ₹27).

Addressing a press conference on Wednesday, Mindtree CEO and managing director Rostow Ravanan said, “The special dividend is to commemorate and celebrate Mindtree’s achievements and will be subject to shareholders’ approval at the company’s AGM.”

“The dividend plans are in line with the firm’s capital allocation policy and is not against corporate governance norms,” CFO Pradip Menon said.

According to Mr. Ravanan, Mindtree has delivered exceptional performance for both the fourth quarter and the full fiscal.

“Over the course of two decades, our strategy of being expertise-led and backed by a unique culture continues to help us attract world-class people to create customer success. Our ability to consistently grow faster than the sector is a reflection of the investments we have made to align with technology trends disrupting our industry.”

The company’s revenue grew at 18.3%, much ahead of the industry average. During the fourth quarter, Mindtree posted revenues of ₹1,840 crore, a 2.9% Q-o-Q and 25.6% Y-o-Y growth. The company’s net profit stood at ₹198.4 crore, a growth of 3.8% and 8.9% Q-o-Q and Y-o-Y respectively. Mindtree’s FY19 net profit grew 32.2% to ₹754.1 crore, while revenue rose 28.5% to ₹7,021.5 crore from the previous fiscal.

Mindtree said it would hire 2,300 freshers from campuses during the current fiscal.

‘No touch with L&T’

Responding to repeated media queries on the L&T bid Mr. Ravanan said, “There has been absolutely no touch with them for some time now.”

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Printable version | Sep 25, 2020 3:50:14 PM | https://www.thehindu.com/business/it-major-mindtree-joins-1-billion-club/article26867595.ece

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