Mindtree Q4 net profit rises 3.7% q-o-q to Rs 198 crore

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Published: April 18, 2019 2:00:46 AM

The EBITDA margin went down by 0.7% Q-o-Q to 15.2%, which also represents a 0.9% drop Y-o-Y, but the net profit margin grew 0.1% Q-o-Q to 10.8%.

Mindtree Q4 net profit rises 3.7% q-o-q to Rs 198 croreMindtree Q4 net profit rises 3.7% q-o-q to Rs 198 crore

IT services firm Mindtree reported a net profit of Rs 198.4 crore for the January-March quarter, up 3.7% sequentially and around 8.8% Y-o-Y. Revenues came in at Rs 1,839 crore a 2.9% increase Q-o-Q. Revenue in dollar terms spiked by 4.2% from Q3 to $262 million and 3.9% in constant currency terms.

The EBITDA margin went down by 0.7% Q-o-Q to 15.2%, which also represents a 0.9% drop Y-o-Y, but the net profit margin grew 0.1% Q-o-Q to 10.8%.

Among business verticles, hi-tech and media’s share in revenue grew by 0.2% over the last quarter and accounted for 39.6% of revenues. The BFSI grew by 0.1% in the same period to account for 21.8% of revenues. However, retail, CPG & manufacturing and travel & hospitality saw sequential declines of 0.1% and 0.3%, respectively.

“Mindtree has delivered exceptional performance for both the fourth quarter and the full fiscal year as we cross the historic $1 billion milestone. Over the course of two decades, our strategy of being expertise-led and backed by a unique culture continues to help us attract world-class people and create customer successes,” said CEO and MD Rostow Ravanan.

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“Our ability to consistently grow significantly faster than the sector is a reflection of the investments we have made to align with technology trends disrupting our industry,” he added.

The company had 349 active clients at the end of the quarter.

The attrition rate increased by 1.7% Y-o-Y at 14.2% and 0.8% sequentially. Rostow said the increase was due to seasonality but didn’t comment on the overall increase in attrition. He added that H1-B visa denials, which is an on-going issue, is not a big challenge for Mindtree as the company applies for very few visas.

Mindtree has also declared an interim dividend of 30% (Rs 3 per equity share of Rs 10 each) and recommended a final dividend of 40% (Rs 4 per equity share of Rs 10 each) for the financial year and a special dividend of 200% (Rs 20 per equity share of face value of Rs 10 each).

Ravanan said the move is to celebrate the twin achievements of exceeding $1 billion annual revenue milestone and 20th anniversary of the company. However, this development also comes amid L&T launching a hostile bid to acquire Mindtree by buying 20.3% owned by Coffee Day Group’s VG Siddharth and acquiring 15% from the open market and launching an open offer for additional 31% at Rs 980 per share.

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