Backed by a healthy order book, Mindtree grows Q1 profits 130%

Mid-tier information technology services firm Mindtree reported a 130% increase in quarterly profit on the back of what the company described as a healthy order book despite headwinds caused by the Covid-19 pandemic. 

The company said its consolidated net profit was at Rs 213 crore, in the quarter ended June 2020 (FY21).

Revenue rose about 4% to Rs 1908.8 crore.

“Our unwavering focus on operational efficiencies has helped us to post a healthy EBITDA (earnings before interest, taxes, depreciation, and amortization) of 18.2%,” CEO Debashis Chatterjee said in a statement.

The company’s stock last traded at Rs 977.95, in a 3% decline on Tuesday.

On a sequential basis, the revenue was down 6.9% (quarter-on-quarter). 

The Bengaluru-based company said it won six new clients during the quarter, adding that it had 292 active clients as of June 30, with about a 5% decline from March.

The company expects a further decline in demand.

In a letter to shareholders, late June, Chatterjee had said that investments in growth are expected to be “few and far between” due to most companies focusing more on business continuity.

The L&T owned firm had reported a 6.6% revenue growth in the quarter ended March 2020.

In June, Mindtree appointed former KPIT executive Vinit Teredesai as its CFO. 

It signed a five-year deal with US real estate services firm Realogy to help the latter with digital transformation.