Mindtree Q3 profit rises 3% YoY to Rs 197 crore; revenue grows 10%

Mid-tier information technology (IT) company Mindtree on Tuesday reported a 3 per cent year-on-year (YoY) rise in its net profit at Rs 197 crore for December quarter of the financial year 2019-20 (Q3FY20). On sequential basis, numbers grew 45.9 per cent. In the previous quarter, the company had posted profit of Rs 135 crore while in the year-ago period, the numbers stood at Rs 191.2 crore.

Revenue for the period came in at Rs 1,965.3 crore, up 10 per cent YoY and 2.7 per cent QoQ. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 23.4 per cent QoQ and 8.1 per cent YoY to Rs 306.3 crore. 

Diluted earnings per share (EPS) came in at Rs 11.96, up 3 per cent YoY and 45.9 per cent QoQ. 

“As we continue to grow revenue, our sharp focus on driving profitable growth has resulted in expansion of operating margin by 2.6% and a rise in net profit by 44.7% as compared to previous quarter,” said Debashis Chatterjee, CEO & Managing Director, Mindtree. “We continue to execute our growth strategy, proactively incubate deals by mining strategic clients and nurture a learning-led culture. The recently concluded Annual Customer Experience Survey results depict industry-leading scores, indicating our exceptional work in delivering quality services to our clients," Chatterjee added. 

Among key highlights, Hi-Tech and Media grew 15.2 per cent YoY while BFSI grew 7.7 per cent YoY. Retail, CGP and Manufacturing grew 1 per cent YoY and Travel while  Hospitality grew by 9.3 per cent YoY. The company's Digital business grew by 13.5 per cent YoY and EBITDA margin improved by nearly 260bps as compared to last quarter.

In US dollar terms, revenue stood at $275.2 million, up 1.5 per cent QoQ and 9.4 per cent YoY. Net profit saw a growth of 44.7 per cent on QoQ basis at $27.7 million. On YoY basis, numbers grew 3.1 per cent.