Mid-tier IT services company Mindtree beat market expectations to report a nearly 130 per cent jump in net profit for the first quarter of the current fiscal at ₹213 crore, on the back of a healthy order book of $391 million and other income.

At a press conference to announce the results, Mindtree MD and CEO Debashis Chatterjee told reporters the company’s focus on operational efficiencies helped it post a robust EBITDA of 18.2 per cent. “With our client-first approach, future-ready talent coupled with an increase in digital demand, we are confident to strengthen our position in the market and drive profitable growth in these unprecedented times.”

Mindtree which is now a subsidiary of infrastructure major L&T, posted a 4.9 per cent year-on-year increase in total income to ₹1,949 crore. In dollar terms, its net profit grew 111.7 per cent to $28.3 million, while revenue fell 4.1 per cent to $253.2 million during the June quarter.

Chatterjee said there will not be any layoffs, and that the focus will be on reskilling and retraining of existing employees. He also said the company will honour all those who have already received offer letters.

The travel and hospitality vertical took the biggest hit during the sector, with revenues from the vertical falling by nearly 50 per cent, said Chatterjee.

Emkay Global, in a note to its investors, said Mindtree’s June quarter revenue performance fell a tad short of the company's mid quarter outlook with a 9 per cent sequential revenue decline. “The company managed to hold margins (EBITDA margins flat adjusted for one-offs in the March quarter, up 110 bps QoQ on a reported basis) while the net profit increase was aided by better margins and higher other income,” it said.

The note further said growth continues to be very strong at the company’s top client, with revenue performance across other segments/client buckets being very weak. In dollar terms, manufacturing fell 7.7 per cent on a QoQ basis while BFSI decreased 9.5 per cent.

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