Mindtree reports muted revenue growth, profit falls by 34 pc

L & T-owned digital transformation company Mindtree on Wednesday reported a net profit of Rs 135 crore during the July to September quarter, marking a decline of 34.6 per cent year-on-year but growth of 45.6 per cent quarter-on-quarter.

The revenue totalled Rs 1,914 crore, up 9.1 per cent from Q2 FY19 and 4.4 per cent Q1 FY20. The company had 343 active clients as of September 30 and 21,267 employees. The trailing 12 months attrition was 16.5 per cent.

"We stay committed to strengthening our execution to invest in growth and drive shareholder value," said Chief Executive Officer Debashis Chatterjee.

On June 30, L & T completed its Rs 10,000 crore hostile takeover of Mindtree through an open offer and was categorised as its promoter after acquisition of a 60.06 per cent stake in the company. Subroto Bagchi, one of the key founding members of Mindtree, chose to retire from the company's board.

On July 5, three other co-founders -- Executive Chairman Krishnakumar Natarajan, Executive Vice Chairman and Chief Operating Officer N S Parthasarathy, and Managing Director and Chief Executive Officer Rostow Ravanan submitted their resignations as board members as well as employees of the company.

Mindtree's offerings to its customers include application development and maintenance, infrastructure management services, independent testing, package implementation, consulting and IP products related solutions.

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