BackMindtree Q1 revenue down 9% QoQ in dollar terms; expects recovery in Q2
The company expects recovery in the coming quarter on the back of a healthy deal pipeline and strong digital demand.Mindtree has no plans to lay off employees in the near future although its bench policy will continue to function as usual.
PremiumBENGALURU: Mindtree Ltd’s dollar revenue for the June quarter declined 9% sequentially to $253.2 million mainly due to the impact of the covid-19 pandemic on its travel, tourism & hospitality vertical that contributes about 16% to the overall revenue.
The Bengaluru-based IT services company expects recovery in the coming quarter on the back of a healthy deal pipeline and strong digital demand.
“We expect Q2 to be better than Q1," said Debashis Chatterjee, chief executive officer and managing director, Mindtree.
In rupee terms, the company’s revenue for the fourth quarter stood at ₹1908.8 crore, down 6.9% sequentially, but 4.1% higher on a year-on-year basis.
The net profit for the quarter ended June rose 3.3% quarter-on-quarter and 130% year-on-year to ₹213 crore on account of the impact of a one-time special bonus offered to employees in the corresponding quarter of the previous year.
Mindtree’s Ebitda margin improved 110 basis points to 18.2% from 17.1% in the previous quarter. “We closed the quarter with a healthy order book of $391 million despite the global headwinds due to the covid-19 pandemic. Our unwavering focus on operational efficiencies has helped us to post a healthy EBITDA of 18.2%," said Chatterjee.
Chatterjee said the company has no plans to lay off employees in the near future although its bench policy will continue to function as usual.
“We will honour all campus offers made," he added.
Mindtree added 738 employees in Q1 taking the total headcount to 21,955 as on the end ofJune quarter. The attrition rate came down to 16.6% from 17.4% in the previous quarter.
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