Mindtree Q4 net up 21.2%; sees strong growth in FY’17

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Mid-sized software services firm today posted 21.2 per cent jump in consolidated net profit at Rs 156 crore for the March quarter on the back of large deal wins.

The Bengaluru-based firm had posted a net profit of Rs 128.7 crore in the year-ago period.

Its consolidated revenue jumped 44.2 per cent to Rs 1,324.2 crore in January-March from Rs 918.1 crore a year ago.

“Our strategy of focussing on specific areas is helping us deliver superior results. The US market has grown well for us, digital is doing well and we have large wins this quarter,” Mindtree CEO and MD Rostow Ravanan said on a conference call.

He added that the company has seen revenues growing at above 15 per cent in the last few years, a trend that is “expected to continue” this fiscal as well.

The company does not give revenue guidance.

In dollar terms, net profit rose 11.1 per cent to USD 23 million, while revenue jumped 32.3 per cent to USD 195.6 million.

For the year ended March 31, net profit grew 12.5 per cent to Rs 603.3 crore, while revenue was up 31.7 per cent at Rs 4,689.6 crore as against the previous fiscal.

The company had 348 active clients as of March 31. It added 37 new clients in the last quarter of 2015-16.

It saw the number of USD 25-million clients growing to 6, USD 10 million clients to 15, USD 5 million clients to 31 and USD 1 million clients to 101.

Mindtree added 1,020 people during the quarter on gross basis, taking its headcount to 16,623.

Rostow said the firm’s deep domain and technology expertise, combined with a sustained investment in building the workforce of tomorrow have produced stellar results.

Asked about the geographies, Rostow said the US continues to see strong demand and growth.

“Europe is a mixed picture… It also suffers from cross currency impact,” he said, adding that the company will have a lower visa spend of USD 2 million this fiscal as compared to USD 3.5 million last year.

The company has also earmarked a capex of USD 22 million for the ongoing fiscal.

Revenues from retail, CPG and manufacturing for the reported quarter stood at Rs 241.4 crore, Banking, Financial Services and Insurance was at Rs 307.5 crore, Technology, Media and Services at Rs 415.7 crore and Travel and Hospitality at Rs 212.1 crore.

The Board of Directors declared an interim dividend of 20 per cent (Rs 2 per equity share after bonus issue of par value of Rs 10 each) for the quarter ended March 31, 2016.