Mindtree Q3 profit rises 29%, dollar revenue grows 5%
Mindtree added eight new clients during the quarter, taking the client list to 276 as of December 2020.
January 18, 2021 / 05:03 PM IST
It is hard not to be influenced by Premji's ways, recalled Natarajan, Chairman, Mindtree during an earlier interaction with Moneycontrol. "He was a great role model," he said.
Midcap IT company Mindtree clocked an impressive 28.7 percent sequential growth in consolidated profit at Rs 326.5 crore for the quarter ended December 2020, backed by growth across verticals and robust margin expansion with a strong order book.
Consolidated revenue grew by 5.1 percent quarter-on-quarter to Rs 2,023.7 crore and dollar revenue increased by 5 percent QoQ to $274.1 million during the October-December period 2020, with a record-high profit of $44.2 million improving 290 bps QoQ.
"Third quarter has by far been the best performing in recent years, backed by broadbased revenue growth of 5 percent across verticals and service lines, robust margin expansion of 350bps, and a healthy order book of $312 million (against $303 million in Q2FY21)," said Debashis Chatterjee, Chief Executive Officer and Managing Director.
"We are witnessing strong business momentum across all verticals with a significant demand for cloud, data and analytics capabilities. Thanks to the strategic focus and hard work of Mindtree Minds, we are now well positioned to continue delivering profitable growth," he added.
Numbers were ahead of analysts’ estimates. Profit was estimated at Rs 270.5 crore on revenue of Rs 2,007 crore, and dollar revenue was expected at $272 million, as per the average of estimates of analysts polled by CNBC-TV18.
At the operating level, earnings before interest and tax (EBIT) surged 18.8 percent sequentially to Rs 396.2 crore, with margin expansion of 230 bps QoQ at 19.6 percent for the quarter ended December 2020, which also surpassed CNBC-TV18 poll estimates of Rs 349 crore and 17.4 percent, respectively.
Mindtree added eight new clients during the quarter, taking the active clients list to 276 as of December 2020 but the same declined compared to 283 active clients in Q2FY21 and 320 clients in Q3FY20.