Mindtree Q1 net profit grows 129.8% YoY at Rs 213 crore; revenue rises 4%

Mid-tier IT company, Mindtree, on Tuesday posted a 129.8 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 213 crore for the quarter ended June 2020 (Q1FY20-21). On a sequential basis, the numbers grew 3.3 per cent. 

The company's revenue came in at Rs 1,908.8 crore, up 4.1 per cent YoY and down 6.9 per cent QoQ. 

In US dollar terms, revenue stood at $253.2 million, down 4.1 per cent YoY and 9 per cent QoQ. Net profit came in at $28.3 million, up 0.1 per cent QoQ and 111.7 per cent YoY. 

"We closed the quarter with a healthy order book of $391 million 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 per cent," said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree. 

Adding, "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."

ICICI Securities had expected Mindtree's revenue in the US dollar terms to decline 7.5 per cent quarter-on-quarter (QoQ). In rupee terms, revenues were expected to decline 4.8 per cent QoQ to Rs 1,952 crore. On a year-on-year (YoY) basis, the numbers were seen growing 6.4 per cent. Net profit or profit after tax (PAT) was expected to stay flat at Rs 206.3 crore on a sequential basis. On a year-on-year basis, the profit was seen surging 122.5 per cent. 

Among other highlights, Mindtree added 6 new clients during the quarter and it had 292 active clients as of June 30. 

At 02:18 pm, the stock of the company was trading 2.57 per cent lower at Rs 982 on the BSE.