MindTree jumps as Q3 net profit rises to Rs 197 cr

MindTree rose 3.46% to Rs 893.60 after consolidated net profit rose 45.92% to Rs 197 crore on 2.66% increase in revenue to Rs 1,965.30 crore in Q3 December 2019 over Q2 September 2019.

Consolidated net profit gained 3% to Rs 197 crore on 10% increase in revenue to Rs 1,965.30 crore in Q3 December 2019 over Q3 December 2019. The result was declared after market hours yesterday, 14 January 2020.

The net profit margin stood at 10% in Q3 December 2019 as against 7.1% in Q2 September 2019 and 10.7% in Q3 December 2018.

EBITDA rose 23.4% to Rs 3,063 crore in Q3 December 2019 over Q2 September 2019. The figure was up 8.1% against the same quarter last year. EBITDA margin stood at 15.6% in Q3 December 2019 as against 13% in Q2 September 2019 and 15.9% in Q3 December 2018.

"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 incubatedeals 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."

Among verticals, while hi-tech and media grew by 15.2% on a year-on-year basis, banking, financial services and insurance (BFSI) rose by 7.7% during the quarter. The digital business moved up by 3.5% year-on-year in this period.

As of 31 December 2019, MindTree's total cash and cash equivalents stood at Rs 256 crore.

As of 31 December 2019, the firm had 320 active clients compared with 343 in Q2 September 2019 and 340 in Q3 December 2018.

The company had a headcount of 21,561 at the end of Q3 December 2019, with an attrition rate of 17.2%.

Number of BOTS rose to 715 in Q3 December 2019 as against 700 in Q2 September 2019 and 518 in Q3 December 2018. A BOT is defined as a software that acts autonomously, free from any interference, human or otherwise, to perform a significant task which will otherwise be performed by a human.

The effective tax rate for Q3 December 2019 stood at 23.6% as against 26.4% in Q2 September 2019 and 13.8% in Q3 December 2018.

MindTree is an international information technology consulting and implementation company that delivers business solutions through global software development.

Powered by Capital Market - Live News