Mindtree added six new clients in the quarter, taking the client count to 292 as of June 30, while its order book stood at $391 million.
IT company Mindtree on July 14 reported a 3.3 percent sequential increase in June quarter net profit, driven by other income (up 122 percent QoQ) and operating income but weak revenue limited growth.
Profit increased to Rs 213 crore in the quarter ended June 2020 compared to Rs 206.1 crore in the March quarter.
Revenue from operations fell 6.9 percent quarter-on-quarter to Rs 1,908.8 crore, while dollar revenue declined 9 percent to $253.2 million, the company told BSE.
Numbers on the revenue front were largely in line with analysts' expectations and the rest was a beat. Profit was estimated at Rs 195 crore and dollar revenue at $256.3 million for the quarter, according to a CNBC-TV18's analysts poll.
Mindtree added six new clients during the quarter, taking total active clients count to 292 as of June 30, 2020, while its order book stood at $391 million.
"We closed the quarter with a healthy order book of $391 million despite the global headwinds due to COVID-19 pandemic. Our unwavering focus on operational efficiencies has helped us to post a healthy EBITDA of 18.2 percent," said Debashis Chatterjee, Chief Executive Officer and Managing Director.
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At the operating level, its earnings before interest and tax (EBIT) grew by 2.6 percent sequentially to Rs 262.3 crore and margin expanded 120 bps to 13.7 percent QoQ in the June quarter, both ahead of CNBC-TV18 poll estimates of Rs 253 crore and 13.04 percent.
The stock was trading at Rs 973.95 on the BSE, down 3.37 percent at 1410 hours.
Expects better Q2, new service line focus
Chatterjee said that the company expects better Q2 at the back of growing digital projects during COVID-19 though deal closures are taking longer. The company was able to gain market share during increasing demand for digital and workplace transformation projects, he added.
Mindtree will now focus on four new service lines such as customer success, data and intelligence, cloud and enterprise IT for deeper account mining. This will also help the company cross sell and upsell its products and services.
Hiring, Chatterjee, will continue albeit selectively on need basis. The focus will be on reskilling and retraining existing employees in new age technologies.
Though the company added close to 738 employees at the end of June quarter, sales and support staff count came down by 70. Chatterjee said the company is looking at different skill sets as it focusing on new service lines. Total employee count now stands at 21,955.