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Mindtree Q1FY21 net profit rises 3.3% QoQ to Rs 213 crore, beats estimates

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IT firm Mindtree reported a 3.3 percent sequential rise in net profit to Rs 213 crore for the quarter ended June 2020.

Mindtree Q1FY21 net profit rises 3.3% QoQ to Rs 213 crore, beats estimates
IT firm Mindtree reported a 3.3 percent sequential rise in net profit to Rs 213 crore for the quarter ended June 2020. The company's net profit in the previous quarter was Rs 206.2 crore. CNBC-TV18 poll had estimated profit at Rs 195 crore.
The company’s revenue during the first quarter of fiscal 2021 dopped 6.9 percent to Rs 1,908.8 crore from Rs 2,050.5 crore, QoQ. Revenue in dollar terms fell 9 percent to $253.2 million. CNBC-TV18 poll had estimated revenue at $256.5 million.
The company has reported a 55 percent decline in travel and hospitality vertical. Revenue contribution from the segment was down to 8 percent from 16 percent.
The company's management expects Q2FY21  to be better than Q1.  Deal wins during the quarter was steady at $391 million but new deals were down 60 percent, QoQ.
"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 post a healthy EBITDA of 18.2,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree.
EBIT during the quarter under review rose 2.6 percent to Rs 262.3 crore from Rs 255.7 crore while EBIT margin expanded 120 bps to 13.7 percent sequentially.
Margin improvement was on the back of rupee depreciation and lower subcontracting costs.
“With our client-first approach, future-ready talent coupled with an increase in digital demand, we are confident to strengthen our position in the market and drive profitable growth in these unprecedented times,” Chatterjee added.
During the April-June period, Mindtree added 6 new clients.
Further, Chatterjee informed that the attrition was reduced to 16.6 percent from 17.4 percent in the previous quarter,
"We have no plan to do any layoffs. We are focused on reskilling of employees and we are going to hire, but for specific needs," he said.
At 2:50 pm, shares of Mindtree were trading 3.74 percent lower at Rs 970.20 apiece on the BSE.
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