With 25% rise in Q4, Mindtree revenue touches $1-billion mark in FY19

Mindtree reported an 8.9 per cent rise in net profit (over a year before) to Rs 198.4 crore for the fourth and final quarter (January-March) of 2018-19, also achieving the milestone of $1 billion (Rs 7,000 crore) in annual revenue. The net profit rise over the earlier, December, quarter was 3.8 per cent. 

Revenue for the March quarter was Rs 1,839 crore, a rise of 25.6 per cent over a year and 3.8 per cent over the earlier quarter. It was a 4.2 per cent growth in dollar terms and one of  3.9 per cent in constant currency (Q-o-Q). With the $1 bn revenue for FY19, it joined L&T Infotech and Mphasis in the mid-tier IT services space. For FY19, net profit grew 32.2 per cent to Rs 754 crore; revenue was up 28.5 per cent. “We have grown higher than the industry average during this fiscal year. With strong demand and the deal pipeline, we hope to grow in the low teens in the next fiscal year,” said Rostow Ravanan, managing director. Adding: “With more than 50 per cent of our revenue now coming from digital services, the company will provide segmental results in the form of cloud, analytics and interactive under the digital umbrella from the next quarter onwards.”

The operating margin was 15.2 per cent, a drop of 70 basis points (bps) sequentially. “Despite currency appreciation, which had an impact of around 50 bps, apart from investment in new technology, our  margin profile remained stable,” said Ravanan. Among the divisions, travel and hospitality grew 29 per cent over year; high tech and media by 24 per cent. As of end-March, employees numbered 20,204, the attrition rate being 14.2 per cent.