Mindtree Q4 net profit surges 54% to ~317 cr

Mindtree on Friday reported a 53.9 per cent rise in fourth quarter profit to ~317.3 crore. Revenue rose 2.9 per cent year-onyear, helped by the company’s focus on operational efficiency programmes over the last few quarters. Revenue for the quarter ended March 31, 2021, was at ~2,109.3 crore.

Mid-sized IT firm Mindtree on Friday reported a 53.9 per cent rise in fourth quarter profit to ~317.3 crore. Revenue rose 2.9 per cent year-on-year, helped by the company’s focus on operational efficiency programmes over the last few quarters.

Revenue for the quarter ended March 31, 2021, was at ~2,109.3 crore. The board recommended a final dividend of 175 per cent or ~17.5 per equity share of par value ~10 each for the financial year ended March 31, 2021. This is subject to the approval of shareholders.

“The final dividend of ~17.5 per share announced on Friday reinforces Mindtree’s commitment to enhance shareholder value. For the year, we delivered revenues of $1,076.5 million and margin expansion of 680 bps, while increasing our order book by 12.3 per cent. As we enter FY22, we are confident that continued client demand for our transformative services, a strong order book, and our strategic investments position us well to deliver double-digit growth and sustain Ebitda above 20 per cent,” said Debashis Chatterjee, chief executive and managing director, Mindtree.

Chatterjee said in a post earnings call that the confidence to attain double-digit growth comes from its current growth momentum, and a strong order book, which is at $1.4 billion. “We are doing a lot of cross sell and upsell. Our strategy is to really focus on key, strategic clients and go as deep as possible.”

Responding to a question on the near 54 per cent annual rise in profit, Chief Financial Officer (CFO) Vinit Teredesai said, “In the last 6-7 quarters, we have launched a lot of operational efficiency programmes. They have started showing results. Last year, we went into a cost managing period, managing our investments at the right pace.”

The trailing 12-month attrition during the fourth quarter was 12.1 per cent, while utilisation was at 84.3 per cent. Chatterjee said the company would significantly increase hiring on the lateral and freshers front in the current financial year.