Business

Mindtree Q2 net profit slides by 35%

Mindtree reports a 35% decline in net profit

Mindtree reported a 35% year-on-year decline in its net profit to ₹135 crore in the September quarter.

On a quarterly basis, profit rose 45.63% from ₹92.70 crore in the June quarter. The firm had reported a net profit of ₹206.20 crore in the same period a year ago.

In Q2, Mindtree’s revenue stood at ₹1,914.30 crore, a growth of 9.1% over the ₹1,755.40 crore recorded in the corresponding quarter a year ago

The company said it had posted a 2x growth in digital revenues and digital transformation business accounted for 50% of the technology firm’s total business.

In dollar terms, the company raked in a revenue of $271.0 million, a 2.6% increase QoQ and a YoY growth of 10.0%. In constant currency, it reported a growth of 3.2% and 11.1% QoQ and YoY respectively. In Q2, the company’s net profit stood at $19.2 million, a QoQ growth of 43.5%, however, a drastic decline of 34.1% YoY.

“In Q1, we had a forex gain of $6 million. Last quarter, we had expenses like salary increase and other costs,” said Pradip Menon, CFO, Mindtree.

The mid-tier IT firm also saw its attrition going up by 3.5% to 16.5% in Q2.

Mindtree CEO Debashis Chatterjee said, “I am not too worried about this attrition at this point of time. We have put sufficient measures to control any spike in attrition. In the last 60 days, I have done many town halls and I can only say, just like I met clients and they have given me a lot of confidence, our employees are showing a lot of hunger for participating in our growth story.’’

Interestingly, Mindtree employed 700 bots in Q2. “Automation is playing a significant role in modernising our technology service delivery, enhancing both efficiency and speed-to-results for our clients,’’ said the company.

Responding to a query on acquisition, Mr. Chatterjee said inorganic activities would be something that the company would look at seriously. “We will look for the right fit at the right time and that is definitely part of our strategy. We have done four acquisitions in the past.’’

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Printable version | Apr 6, 2020 6:22:41 PM | https://www.thehindu.com/business/mindtree-q2-net-profit-slides-by-35/article29713565.ece

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