Revenue up 4.1% sequentially in line with St expectations
New Delhi: Technology services company Mindtree reported a 4.9% increase in net profit for the quarter ended September 30 and said revenue growth is expected to exceed industry lobby Nasscorn's estimate of 13-15% in this financial year. Profit rose to $22.74 million from the preceding quarter, the Bangalore based company said in a release. Revenue increased 4.1% sequentially to $147 million, almost in line with street expectations.
"Our deep expertise in digital and infrastructure services has led to continued opportunities to help our clients differentiate their business. Our strategy of becoming a leader in digital solutions is continuing to bear fruit and has contributed to another strong growth quarter for Mindtree," said Krishnakumar Natarajan, CEO and MD of Mindtree. The company said it added eight clients during the quarter, taking the total of active clients to 200. Mindtree signed orders worth $165 million in the Q2, of which renewals were $102 million, Natarajan said. Growth in the October-December quarter would be marginal due to slower ramp-ups and normal seasonality, but since the fourth quarter (January-March) is not affected by seasonality Mindtree is on track to achieve higher growth than Nasscom's estimate, the CEO said. All of Mindtree's businesses saw over 5% growth during the quarter, while digital/SMAC services posted a growth of 8.7% from the previous quarter.
The company's attrition rate in the trailing 12 months rose to 15.7% from the earlier quarter when it was 14.2%. Mindtree said the increase was "not a concern" since attrition goes up seasonally, but over the longer term, it would continue to focus on employee-centric initiatives to retain them. Mindtree added 810 employees on a gross basis during the quarter, taking the total to 13,018. The company's board approved an interim dividend of z3 per share for the September quarter.