Mindtree net plunges 41% yearly, 53% quarterly

Mindtree. (File Photo: IANS)
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Mindtree net plunges 41% yearly, 53% quarterly

Bengaluru: Leading IT consulting firm Mindtree on Wednesday reported Rs 93 crore net profit for the first quarter of fiscal 2019-20 against Rs 158 crore in the same period a year ago, which is a 41 per cent annual decline.

Sequentially too, the city-based software services firm, reported 53 per cent plunge in net profit from Rs 198 crore a quarter ago.

Though revenue grew 11.8 per cent annually for the quarter (Q1) under review to Rs 1,834 crore from Rs 1,640 crore in the like period year ago, it remained flat (0.3 per cent) sequentially from Rs 1,839 crore a quarter ago.

In a hostile take-over, Mumbai-based infrastructure construction major Larson and Toubro (L&T) recently acquired controlling stake (61 per cent) in Mindtree from its promoters after it bought about 20 per cent stake of The Coffee Day founder V.G. Siddhartha for Rs 3,300 crore on March 18.

Subsequently, L&T increased its holding with more shares from the open market and an open offer on May 14 for an additional 31 per cent stake for Rs 5,030 crore at Rs 980 per share of Rs 10 face value to have full control over it.

The company had 346 clients by the quarter-end, including 46 clients in the $5-million price band.A

With 15 per cent annual attrition, the headcount at the quarte-end was 20,935.

A”Bots are software that acts autonomously, free from interference, human or otherwise, to perform a specific task which will otherwise be performed by a human,” said the statement.

The company has 674 bots or robots, an automated program, that runs on the internet.

“Automation is playing a major role in modernising our technology service delivery, enhancing both efficiency and speed-to-results for our clients,” said the company in a statement here.

The company’s blue-chip scrip with Rs 10 face value per share gained Rs 2.60 at the end of day’s trading to close at Rs 751.95 against Tuesday’s closing rate of Rs 749.35 and opening price of Rs 755.85./Eom/335 words.

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