Mindtree Q2 profit up 88%, sees broad-based growth1 min read . Updated: 15 Oct 2020, 06:19 PM IST
- On a sequential basis, the net profit was up 19.1% from ₹213 crore in the previous quarter
- The company added eight new clients during the quarter, taking the total number of active clients to 283 as of the September quarter
Bengaluru: Mindtree Ltd, owned by Larsen & Toubro (L&T) Ltd, posted an 88% year-on-year rise in net profit to ₹253.7 crore for the second quarter-ended September on the back of operational efficiencies and improved utilization.
On a sequential basis, the net profit was up 19.1% from ₹213 crore in the previous quarter.
The Bengaluru-based IT services company’s revenue for the second quarter stood at ₹1,926 crore, marginally up 0.9% sequentially and 0.6% on an annual basis as business environment across all sectors and geographies gradually improved, with good traction in the UK and Continental Europe.
The closely-watched dollar revenue was up 3.1% sequentially to $261 million on the back of deal closures worth a total contract value of $303 million during the second quarter. The EBITDA margin improved to 19.6% from 18.2% in the previous quarter.
“The world is slowly emerging from the challenges caused by the pandemic…we see a strong pipeline and broad-based growth," said Debashis Chatterjee, chief executive officer and managing director, Mindtree.
The company added eight new clients during the quarter, taking the total number of active clients to 283 as of the September quarter.
The attrition rate came down to 13.8% from 16.6% in the previous quarter. The company said it will offer salary increments to its employees effective 1 January, 2021 in line with industry standards and continue to hire based on business requirements.
On Wednesday, Infosys Ltd indicated green shoots of recovery for the IT services sector as it revised its 2020-21 revenue growth guidance upward to 2-3% from the earlier guidance 0-2% in constant currency.
Cross-town competitor Wipro Ltd too this week provided a sequential revenue growth guidance of 1.5-3.5% for the third quarter, on the back of improvement in demand environment and a robust deal pipeline.