Mindtree, now a Larsen & Toubro group company, on Friday reported a 16.3 per cent year-on-year (YoY) decline in its net profit at Rs 630.90 crore for the financial year ended March 31, 2020. Going ahead, the company anticipates softness in demand in FY21 due to the unprecedented COVID-19 pandemic.
The Bengaluru-headquartered mid-size IT services company had posted net profit of Rs 2,494 crore in the financial year 2018-19.
Mindtree's revenue, however, rose 10.6 per cent to Rs 7,764.3 crore in FY20 as compared to Rs 14,582 in FY19.
"In dollar terms, net profit fell 17.7 per cent YoY to $88.5 million, while revenue climbed 8.7 per cent YoY to $1088.8 million," Mindtree said in a filing to the Bombay Stock Exchange.
For the fourth quarter ended March 31, 2020, Mindtree posted consolidated net profit of Rs 206.2 crore compared to Rs 198.4 crore in the same quarter last year, registering a YoY growth of 3.9 per cent.
Consolidated revenue of the IT firm was up 11.5 per cent YoY at Rs 2,050.5 crore in Q4FY20.
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In dollar terms, the company reported net profit at $28.2 million in Q4FY20, while revenue for the quarter jumped 6.3 per cent to $278.4 million.
Commenting on earnings, Debashis Chatterjee, CEO and MD, Mindtree said, "Our relentless focus and client-first approach have resulted in robust Q4 performance on multiple dimensions -revenue growth of 1.9 per cent inconstant currency, expansion of operating margin by 150 basis points and record deal wins of $ 393 million."
The company, however, is well equipped to handle the global crisis based on the business continuity plan it has successfully implemented to ensure the health and safety of its employees while fully supporting its clients worldwide, Chatterjee said.
At the end of March 31, 2020, the company's active client base stood at 307. It had 21,991 employees at the end of the fourth quarter with trailing 12-months attrition at 17.4 per cent.
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Mintree's board has recommended a final dividend of 100 per cent (Rs 10 per equity share of face value of Rs 10 each) for FY20, subjected to requisite regulatory approval.
The board also accepted resignation of Milind Sarwate, who stepped down from the position of independent director due to the re-organisation of his portfolio of board membership across various companies, the company said.
Ahead of the earnings announcement, shares of Mintree closed Friday's trade at Rs 780.70, up 2.07 per cent against the previous close of Rs 764.90 on the BSE.