InvestorQ : How do you see the second quarter results of Mindtree?
Niti Shenoi made post

How do you see the second quarter results of Mindtree?

ishika Banerjee answered.
9 months ago

It was a strong quarter for software major, Mindtree, which was largely in line with how other software majors also reported numbers. For the Sep-20 quarter, Mindtree reported 19% jump in net profits at Rs.253.70 crore on a sequential basis compared to Jun-20.

The total sales revenues of Mindtree for the Sep-20 quarter were up just about 1% in sequential terms at Rs.1926 crore over the June numbers. During the Jul-Sep 2020 quarter, the company won fresh deals worth $310 million.

The company also declared an interim dividend of Rs.7.50 per share. There have been expectations of a buyback but its cash reserves are not as abundant as the big 4 IT companies and hence that looks unlikely at this point of time.

It may be recollected that Mindtree had been going through a long management struggle in the previous year as the original management wanted to abstain selling the company to L&T after VG Siddhartha of Coffee Day Group had sold his 20% stake in the company.

That stand-off had impacted performance of the company in the last few quarters but stability seems to be coming back now. With uncertainty out of the way, the company is back to 18% operating margins, although still lower than it larger peers.