Total revenues grew 2.9 percent on a QoQ basis to Rs 1,839.40 crore for the quarter ended March
Mindtree on April 17 said it touched $1 billion in revenue for the fiscal ended March 31, 2019. The IT services company also declared a special dividend of 200 percent to mark 20 years in operation and for crossing the $1 billion milestone.
The company reported a consolidated net profit of Rs 198 crore for the fourth quarter, an 8.9 percent growth over Rs 182.2 crore for the comparable quarter last year.
The company’s consolidated revenue for the fourth quarter grew to Rs 1839.4 crore, up 25.6 percent from Rs 1464 crore last year.
The mid-tier firm’s profit for the year ended March 31, 2019, was Rs 754.1 crore ($108 million), up 32.2 percent from Rs 570.1 crore for the same period in FY2018.
The company’s consolidated revenue for the fiscal grew to Rs 7,021.5 crore ($1 billion), up 28.5 percent from Rs 5,462.8 crore.
Addressing the media persons, Rostow Ravanan, CEO, said the company, “It is the fifth year in a row the company has grown faster than the industry. Apart from the $1 billion milestone, we have crossed $100 million in net profit for the first time.”
Hi-tech and media continue to drive growth accounting for about Rs 2,758.6 crore followed by BFSI and retail, CPG and manufacturing at the range of Rs 1500 crore.
Digital accounts for about 50 percent in terms of revenues at $500 million, highest in the Indian IT services industry. Ravanan said, “The company will report digital revenues in terms in three categories interactive, analytics and cloud to reflect the growing digital business for the company.”
Mindtree’s revenue guidance was in the range of low teens for FY20, lower than last year's.
The company will give out wage hikes of about 6 percent offshore and 1-1.5 percent onsite for junior employees with experience band of 0-5 years from April 1, 2019. In addition, employees will get a bonus to mark the 20th year anniversary and the key milestone of $1 billion in revenue.
“The employees will get the bonus in the light of achieving key milestones, however, we cannot yet share the form and nature,” Ravanan added.
Mindtree now has 20,204 employees as of March 31, 2019, with an attrition rate of 14.2 percent. Ravanan said around 2,200 campus recruitment is planned for FY20.
Motilal Oswal, which maintained its neutral rating on Mindtree, expected the net profit to climb by little over 12 percent on a YoY basis to Rs 190.0 crore.
The Board of Directors at its meeting held on April 17, also approved an interim dividend of 30 percent or Rs 3/share. The board recommended a final dividend of 40 percent or Rs 4 per equity share on the face value of Rs 10/- per share.
Further, a special dividend of 200 percent or Rs 20/- per equity share of the face value of Rs 10 each to celebrate the twin achievements of exceeding $1 billion annual revenue milestone and the 20th anniversary of the company, MindTree said in the filling.The dividends are subjected to shareholder approval, which will be held in July.