Mindtree Q3 profit rises 65.7% YoY, revenue up 3%

On the back of strong demand for cloud, data and analytics capabilities, mid-tier information technology (IT) and outsourcing services provider Mindtree has reported a 65.7% increase in its profit for the third quarter ended December 31, 2020.

The company said on Monday that its quarterly net profit has grown to Rs 326.5 crore from Rs 197 crore a year ago. Sequentially, it grew 28.7% in comparison to the previous quarter.

Meanwhile, revenue from operations rose to Rs 2023.7 crore, up 3% from that reported during the same period last year.

“Our third quarter has by far been the best performing in recent years backed by broad-based revenue growth of 5.0% (QoQ) across our verticals and service lines, robust margin expansion of 350bps, and a healthy order book of $312 M,” Debashis Chatterjee, CEO and managing director at Mindtree, said in a statement.

Segment-wise, communication, media, and telecom continued to be the biggest contributor of revenue for Mindtree, bringing in as much as Rs 1008.9 crore, up 5.1% from the previous quarter.

The revenue from travel and hospitality grew 13% sequentially, while Retail, CPG, manufacturing and BFSI sectors witnessed a sequential rise of 5.8% and 0.9%, respectively.

“We are witnessing strong business momentum across all verticals with a significant demand for cloud, data and analytics capabilities. We continue to capitalize on the evolving market dynamics with solutions that help enterprises navigate the new normal and grow their businesses. Thanks to the strategic focus and hard work of our Mindtree Minds, we are now well-positioned to continue delivering profitable growth,” Chatterjee added in the statement.

Mindtree also added that it added 8 new clients in the quarter, with a total of 276 active clients as of December 31, 2021 -- nearly 16% less than a year ago.