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Mindtree Q4 net profit up 9% at Rs 198 crore; board recommends special dividend of Rs 20 per share

In dollar terms, Mindtree's revenue jumped 15.80 per cent YoY to USD 262 million, while net profit increased merely by 0.3 per cent to USD 28.2 million

twitter-logo BusinessToday.In   New Delhi     Last Updated: April 17, 2019  | 17:58 IST
Mindtree Q4 net profit up 9% at Rs 198 crore; board recommends special dividend of Rs 20 per share
Mindtree board on Wednesday declares an interim dividend of Rs 3 per equity share

Bengaluru-based IT firm Mindtree on Wednesday reported 8.89 per cent year-on-year growth in its consolidated net profit at Rs 198.40 crore for the fourth quarter ended March 31, 2019, helped by broad-based growth across all verticals.

"The mid-sized IT company had posted consolidated net profit of Rs 182.20 crore in the same quarter last year," Mindtree said in a filing to the Bombay Stock Exchange.

The company's revenue grew by 25.6 per cent to Rs 1,839.4 crore in March quarter from Rs 1,464 crore in the year-ago period.

In dollar terms, revenue jumped 15.80 per cent YoY to USD 262 million, while net profit increased merely by 0.3 per cent to USD 28.2 million.

The operating margin (EBITDA margin) of the company declined to 15.2 per cent in Q4 FY19 versus 16.1 per cent in Q4 FY18.

Also Read: L&T gets Competition Commission approval to acquire 66.15% stake in Mindtree

For the financial year 2018-19, Mindtree's net profit soared 32.2 per cent to Rs 754.1 crore, while revenue climbed by 28.5 per cent to Rs 7,021.5 crore from the previous fiscal.

In FY19, Travel and Hospitality business grew by 28.7 per cent, followed by Hi-Tech & Media (24%), Retail, CPG & Manufacturing grew (13.5%), BFSI (7.4%) and Digital business (32.2%).

The board of directors of the company at its meeting today declared an interim dividend of 30 per cent (Rs 3 per equity share of par value Rs 10 each). The board also recommended a final dividend of 40 per cent for the financial year ended March 31, 2019 and a Special Dividend of 200 per cent (Rs 20 per equity share of face value of Rs 10 each) to "celebrate the twin achievements of exceeding USD 1 billion annual revenue milestone and 20th anniversary of the company".

Commenting on Q4 earnings, Mindtree CEO and Managing Director Rostow Ravanan said, "Mindtree has delivered exceptional performance for both the fourth quarter and the full fiscal year as we cross the historic $1 billion milestone. Over the course of two decades our strategy of being expertise-led and backed by a unique culture continues to help us attract world class people and create customer successes."

Also Read: Mindtree drops buyback plan, Committee of Independent Directors set up to look into the L&T offer

Mindtree faces a hostile takeover bid by L&T as the infrastructure giant plans to buy a majority stake in the company for nearly Rs 10,700 crore. Recent reports suggest that the competition watchdog Competition Commission of India (CCI) has allowed L&T to acquire up to 66.15 per cent stake in the Bengaluru-based IT services firm.

In the mid of March, L&T bought 20.40 per cent stake in Mindtree from Cafe Coffee Day founder VG Siddhartha for about Rs 3,300 crore. The company said it would raise its stake in Mindtree to 66.32 per cent by spending as much as Rs 7,464 crore through a combination of open offer and stock market purchase, taking the total deal value to Rs 10,800 crore.

Edited by Chitranjan Kumar

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