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Mindtree Q2 profit dips 35% to Rs 135 crore, revenue rises 9%

BusinessToday.In     October 16, 2019

Mid-sized IT firm Mindtree, which is now controlled by engineering and construction major Larsen & Toubro, has reported 35 per cent year-on-year decline in its net profit at Rs 135 crore for the second quarter ended September 30, 2019. On a quarterly basis, the profit jumped 45.63 per cent as against Rs 92.70 crore in June quarter.

"The Bengaluru-based firm had posted net profit of Rs 206.20 crore in the same period last year," Mindtree said in a filing to the Bombay Stock Exchange.

The revenue of IT services company grew by 9.1 per cent to Rs 1,914.30 crore in Q2FY20 versus Rs 1,755.40 crore in Q2FY19.

In dollar terms, Mindtree reported a net profit of $19.2 million in Q2FY20, down 34.1 per cent year-on-year, while revenue grew by 10 per cent y-o-y to $271 million.

Mindtree's attrition rate was 16.5 per cent in the last twelve months. As of September 30, 2019, the total employee strength of the company was 21,267, up 332 from the previous quarter. The company had 343 active clients at the end of September 2019.

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This was the second corporate announcement by the company since L&T acquired 60.06 per cent stake in the company. In July, L&T had acquired controlling stake in Mindtree after its four founders & directors, Subroto Bagchi, N.S. Parthasarathy, Natarajan and Rostow Ravanan, quit to conclude the open offer.

Commenting on Q2 earnings, Debashis Chatterjee, Mindtree CEO said, "Our second quarter performance of double digit y-o-y revenue growth reflects our client centricity, our employees' winning spirit and our innovation."

"We stay committed in strengthening our execution to invest in growth and drive shareholder value," Chatterjee added.

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The company's board has declared an interim dividend of Rs 3 per equity share of par value Rs 10 each. The record date for payment of this interim dividend is October 25, 2019.

Ahead of the Q2 results, shares of Mindtree closed 2.48 per cent higher at Rs 743.30 apiece on the Bombay Stock Exchange.

Edited by Chitranjan Kumar

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