Mindtree Q1 profit more than doubles to Rs 213 crore, revenue up 4%

Mindtree, now a Larsen & Toubro group company, on Tuesday reported a significant jump of 129.8 per cent in its consolidated net profit at Rs 213 crore for the first quarter ended June 30, 2020, despite the global headwinds due to COVID-19 pandemic. The profit was attributed to healthy order book of $391 million and EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) of 18.2 per cent during April-June quarter of 2020.

The Bengaluru-headquartered mid-size IT services company had posted net profit of Rs 92.7 crore in the same quarter last year, Mindtree said in a regulatory filing.  

Mindtree's revenue rose by 4.1 per cent to Rs 1,908.8 crore in Q1 FY21 as compared to Rs 1,834.2 crore in Q1 FY20.

In dollar terms, net profit surged 111.7 per cent to $28.3 million, while revenue fell by 4.1 per cent to $253.2 million during the June quarter of this fiscal over the year-ago period, Mindtree said in a filing to the Bombay Stock Exchange.

Also Read: Mindtree FY20 profit dips 16% to Rs 631 crore; anticipates muted demand in FY21 amid coronavirus fears

During the quarter under review, Mindtree's active client base stood at 292, while it added six new clients during April-June period.

The company had 21,955 employees as of June 30, 2020, with trailing 12-months attrition at 16.6 per cent.

"We closed the quarter with a healthy order book of USD 391 million despite the global headwinds due to the COVID-19 pandemic. Our unwavering focus on operational efficiencies has helped us to post a healthy earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 18.2 per cent," Mindtree CEO and Managing Director Debashis Chatterjee said.

Also Read: Mindtree appoints Vinit Teredesai as CFO

"With a client-first approach, future-ready talent coupled with increase in digital demand, Mindtree is confident of strengthening its position in the market and driving profitable growth in these unprecedented times," he added.

Despite strong Q1 earnings, shares of Mindtree were trading at Rs 982, down 2.57 per cent, against previous closing price of Rs 1,007.90. The stock opened day's trade at Rs 1023.80 and hit an intraday high and low of Rs 1,023.80 and Rs 965.75, respectively.