Mid-sized IT firm Mindtree Wednesday posted a 65.4 per cent rise in consolidated net profit at Rs 206.3 crore for the September quarter and exuded confidence of registering strong revenue growth for the full fiscal despite "some challenges in the global business environment".
The company had registered a net profit of Rs 124.7 crore in the year-ago period. Its revenues rose 31.8 per cent to Rs 1,755.4 crore in the quarter under review from Rs 1,331.6 crore in the year-ago period. On sequential basis, the net profit was higher by 30.4 per cent, while revenue grew 7.1 per cent.
"Our deep expertise across both Digital and Run landscapes are delivering competitive advantage for our clients, while fueling Mindtree's continued growth. By investing in an 'automate-everything' platform-based approach, we are consistently driving larger deals," Mindtree CEO and Managing Director Rostow Ravanan said in a conference call.
He added that deal pipeline continues to remain strong with strong adoption of digital services across verticals like travel, consumer products, hospitality and technology. Digital business grew 3.3 per cent quarter on quarter and 34.9 per cent on year-on-year basis.
"We sense a cautious and a volatile macroeconomic scenario in the world and that will pose some challenges to the business environment. In addition, Q3 has a regular seasonality factors as well. Inspite of these headwinds, we are confident that we have a very strong pipeline," he said.
Ravanan further stated that the revenue growth in the December quarter is expected to be similar to the September quarter and "for the full year, we would like to reiterate we are on track to achieve strong growth for FY19".
In the September quarter, Mindtree signed deals worth USD 271 million, of which USD 222 million were renewals and new contracts were USD 49 million. Contracts to be executed within one year were USD 198 million and greater than one year were USD 73 million. The company had a foreign exchange gain of USD 5.7 million.
In dollar terms, the company's net profit increased 50.4 per cent to USD 29.1 million in the said quarter, while revenue was up 19.5 per cent to USD 246.4 million from the year-ago period.The board of directors has declared an interim dividend of Rs 3 per equity share.
Mindtree had 341 active clients at the end of September, 2018. It had a total headcount of 19,402 people with trailing 12 month attrition at 13 per cent.
"During this quarter, we also further advanced the innovation in our reskilling efforts, helping our people to succeed in the modern information economy," he said.
Shares of the company Wednesday closed marginally lower at Rs 978.95 apiece on the BSE.
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