Mindtree Net Profit Grows 35% to Rs 191 Crore in Quarter III of 2018

Mid-sized IT firm Mindtree on Wednesday said its consolidated net profit for the December 2018 quarter grew 35.1% to Rs 191.2 crore and exuded confidence that its January-March numbers will be better than the just-concluded quarter.

Mindtree had registered a net profit of Rs 141.5 crore in the October-December 2017.

Its revenue grew 29.7% to Rs 1,787.2 crore in the December 2018 quarter from Rs 1,377.7 crore in the year-ago period.

“Our consulting first approach combined with deep technology and domain expertise are helping our clients drive enterprise-wide transformations...this has also helped the company sustain its growth momentum, even in a seasonally weak quarter,” Mindtree Chief Executive Officer and Managing Director Rostow Ravanan told reporters on a concall.

He added that the company continues to invest in people to further strengthen its ability to create sustainable value for all stakeholders.

The Bengaluru-based company has been in the spotlight over speculations of promoters being under pressure to sell their stakes.

The management, however, skirted questions on the issue saying it remains committed to delivering growth for the company but there are some matters which are not under its control.  According to reports, one of Mindtree’s largest investors and Café Coffee Day (CCD) founder, V G Siddhartha, and two of his firms are expected to sell their stakes.

The reports said the promoters are now under pressure to either sell a part of their holdings to the buyer, along with Siddhartha, or allowing the buyer to purchase shares from the market and force an open offer to gain control in Mindtree.

 In the December 2018 quarter, Mindtree had 340 active clients. Its headcount stood at 19,908 people with trailing 12-month attrition at 13.4%.

Mindtree said its digital business in the quarter under review grew by 32.4% year-on-year.