Mindtree PBT more than doubles in Q1

IT services company Mindtree delivered a mixed set of numbers for the first quarter of financial year 2020-21 (Q1FY21) as it beat profit estimates because of a reduction in other expenses. Its profit before tax (PBT) stood at ~289.8 crore, up 129.6 per cent year-onyear (YOY), and 10.9 per cent sequentially, according to Mindtree’s exchange filing.

The Bengaluru-headquartered firm posted a net profit of ~213 crore, a rise of 129.8 per cent YOY and 3.3 per cent sequentially. The jump in net profit was mainly helped by around ~87.7 crore in savings the company made towards travel, reduction in other discretionary spends, and optimisation of subcontracting costs.

The firm’s revenues grew 4.1 per cent YOY to ~1,908.8 crore during this period, though it declined 6.9 per cent sequentially. Dollar revenues stood at $253.2 million, a 9 per cent fall in constant currency terms over the previous quarter. Operating margin of the L&T Groupowned firm improved 110 basis points sequentially to 18.2 per cent in Q1FY21.

The company said it has won deals worth of $391 million during the quarter. Segment-wise, high-tech services was the only vertical that witnessed a sequential growth, up 7.6 per cent, while travel and hospitality, which accounts for 16 per cent of the company’s overall

revenue, more than halved.

“Against the backdrop of a very challenging environment globally, our order book continues to be healthy and we continue to renew and gain market share within our portfolio,” said Debashis Chatterjee, chief executive officer and managing director, Mindtree. In Q1, Mindtree’s headcount stood flat at 21,955 sequentially, with its attrition rate falling by 80 basis points to 16.6 per cent.