Mindtree Ltd, which was acquired by engineering giant Larsen and Toubro Ltd, reported 41% drop in its quarterly profit because of higher expenses.
Net profit fell to ₹92.7 crore in the quarter ended 30 June from ₹158.2 crore in the year earlier, the Bengaluru-based company told the exchanges on Wednesday. Profit plunged 53% from ₹198.4 crore in the preceding quarter.
The company’s total expenses rose to ₹1,730 crore in the April-June period from ₹1,451.3 crore in the corresponding period a year ago.
Revenue rose 11.9% to ₹1,834.2 crore in the June quarter from ₹1,639.5 crore in the year-ago period. However, on a sequential basis, it was lower than the ₹1,839.4 crore reported in the March quarter.
The company, which primarily provides IT services to retail, consumer packaged goods manufacturing, banking, media, travel and hospitality industries, had 346 active clients as on 30 June.
Subroto Bagchi, one of the key founding members of Mindtree, chose to retire from the board of the company with effect from 17 July. The company’s chief executive Rostow Ravanan, chairman Krishnakumar Natarajan and executive director N.S. Parthasarathy also resigned on 5 July.
The three individuals, who were a part of the company’s founding team two decades ago and have served Mindtree as directors, will no longer be classified as board members from Wednesday.
Signing the June quarter results was probably Ravanan’s last assignment as Mindtree’s managing director and chief executive officer.
Mindtree said its attrition rate stood at 15.1% during the trailing 12 month period.
The company is undergoing a transition following its recent takeover by Larsen and Toubro.
“While the external factors pose some challenges, our focussed strategy and strong client relationships make us confident of delivering above-industry growth rates in FY20 as well," said Ravanan.