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Technology

Mindtree net up 45% quarterly, down 35% yearly in Q2

Bengaluru, Oct 16


Leading software services vendor Mindtree on Wednesday reported Rs 135 crore consolidated net profit for the second quarter (Q2) of fiscal 2019-20, registering 45 per cent sequential growth from Rs 95 crore a quarter ago.

Net profit on annual basis, however, declined 35 per cent from Rs 206 crore in the same period last year.

In a regulatory filing on the BSE, the technology arm of engineering giant L&T said that consolidated revenue for the quarter under review rose 4.4 per cent sequentially to Rs 1,914 crore from Rs 1,834 crore a quarter ago and 9 per cent yearly from Rs 1,755 crore in the like period a year ago.

In dollar terms, net income was up 44 per cent quarterly to $19.2 million, but down 34 per cent annually.

Similarly, gross income at $271 million is up 2.6 per cent quarterly and 10 per cent yearly.

"Our second quarter performance of double digit annual revenue growth reflects our client centricity, employees' winning spirit and innovation," Mindtree Chief Executive Debashis Chatterjee in a statement here.

The Mumbai-based Larson & Toubro (L&T) acquired 60.06 per cent controlling equity stake in the city-based IT firm on July 3.

The company has 343 clients till the quarter end on September 30, with one client in $5-million price band taking its total to 47.

With 16.5 per cent attrition annually, the company has 21,267 techies on its rolls.

"Automation is playing a vital role in modernising our technology service delivery, enhancing efficiency and speed-to-results for our clients," said Chatterjee.

The company had 700 BOTs employed during the quarter.

A BOT is a software programme that operates on the Internet and performs repetitive tasks.

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.

L&T had set its eyes on taking over Mindtree in a hostile bid after it purchased 20.32 per cent stake of The Coffee Day founder V.G. Siddhartha for Rs 3,300 crore on March 18, increased its holding with more shares from the open market and an open offer on May 14 for an additional 31 per cent stake for Rs 5,030 crore at Rs 980 per share of Rs 10 face value to have full control over it.

As a two-decades global technology consulting and services firm, Mindtree helps enterprises marry scale with agility to achieve competitive advantage.

The company's blue scrip of Rs 10 per face value gained Rs18 per share to end at Rs 743.30 in Wednesday trading as against the Tuesday's closing rate Rs 725.30 and opening price of Rs 735.