Mindtree reports strong Q2 profit on fall in rupee, new deals

Bengaluru: Mid-tier IT services company Mindtree reported 65% growth in net profit to Rs 206 crore on revenues of Rs 1755 crore during the July-September quarter. The company said higher growth was primarily fuelled by gain from Rupee depreciation against the US dollar and multi-year multi-million deal wins.

During the quarter, the Bengaluru-headquartered company posted 50% year-on-year growth in net profit to $29.1 million; while revenue grew 19.5% to $246.4 million.

“We had many multi-year multi-million dollar deals this quarter,” said Rostow Ravanan, CEO & managing director, adding that: “By investing in an ‘automate-everything’ platform-based approach, we are consistently driving larger deals and industry recognition. During this quarter, we also further advanced the innovation in our reskilling efforts, helping our people to succeed in the modern information economy.”

Ravanan expects the company to report better growth numbers than the industry for the full year.

The company saw a significant gain in foreign exchange and a depreciating Rupee against USD resulted in higher margin, said Pradip Menon, chief financial officer, Mindtree. “Foreign exchange gain was $5.7 million compared to $2.8 million in the prior quarter. Rupee depreciated to 72.5 against (the) USD at the end of quarter. This resulted in better realisation,” said Menon.

Mindtree, which has 484 bots employed as on September 30, 2018, said “automation is playing a significant role in modernizing its technology service delivery, enhancing both efficiency and speed-to-results for clients”.