Mindtree Q2 PAT jumps 88% YoY to Rs 254 cr

The IT firm's consolidated net profit jumped 88% to Rs 253.7 crore on a 0.61% rise in revenue to Rs 1926 crore in Q2 September 2020 over Q2 September 2019.

Sequentially, consolidated net profit rose 19% and revenue increased 0.9% in Q2 September 2020 (Q2FY21) over Q1 June 2020 (Q1FY21). Consolidated profit before tax (PBT) stood at Rs 344.70 crore in Q2FY21, rising 19% from Rs 289.80 crore in Q1FY21. Current tax expense rose 18.49% to Rs 91 in Q2FY21 over Q1FY21. The result was announced after market hours yesterday, 15 October 2020.

Consolidated EBITDA grew by 8.8% to Rs 378.4 crore in Q2FY21 over Q1FY21. EBITDA margin stood at 19.6% during Q2FY21 over 18.2% in Q1FY21.

In dollar terms, the revenue stood at $261 million, registering a growth of 3.1% quarter-on-quarter (Q-o-Q) and a decline of 3.7% year-on-year (Y-o-Y). The net profit was at $34.3 million, recording a growth of 21.5% Q-o-Q and 79.2% Y-o-Y.

There are currently 283 active clients as of 30 September 2020. Eight new clients have been added during the quarter. The company had 21,827 employees as of 30 September 2020. Trailing 12 months attrition rate stood at 13.8% in September 2020 as against 16.5% in the same period last year.

Commenting on the performance, Debashis Chatterjee, CEO and MD of Mindtree said, "I am pleased and encouraged with our performance in delivering a broad-based growth with revenue of $261M and EBITDA of 19.6% for the quarter. We appreciate the trust from our clients and thank our employees for their unrelenting dedication and collaborative spirit during these unprecedented times. Our approach of Redefining Possibilities in the new normal for businesses enabled us to deliver a balanced H1 performance. This has helped to reinforce confidence on our strategy to build on existing strengths and drive profitable growth by being the business transformation partner for our clients, developing future ready talent and delivering value to all our stakeholders," said.

Meanwhile, the company has declared a dividend of Rs 7.5 per equity share. The record date for payment is 27 October 2020 and the dividend will be paid on 11 November 2020.

There have also been a few changes in the board composition with Jayant Damodar Patil resigning with effect from 15 October, while the current chief operating officer - Dayapatra Nevatia, and Venugopal Lambu, president - global markets, both have been elevated as executive directors.

Shares of Mindtree tumbled 9.95% to Rs 1285.45 on BSE. MindTree is an international information technology consulting and implementation company that delivers business solutions through global software development.

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