InvestorQ : How was the Mindtree quarterly results for the Dec-20 quarter?
Dia Deshpande made post

How was the Mindtree quarterly results for the Dec-20 quarter?

swati Bakhda answered.
2 years ago

Like most of the IT companies, Mindtree also reported PAT higher by a whopping 65.7% on a YOY basis at Rs.326.50 crore. For the quarter, the company reported 2.97% growth in Dec-20 quarter consolidated sales at Rs.2023.70 crore, largely in line with other IT companies. Top line growth has been across verticals with healthy order book of $321 million.

Let us now turn to profit performance. For the Dec-20 quarter, operating profits went up sharply by 67.6% at Rs.396.20 crore due to tighter control and lower other expenses. OPM jumped from 12.03% to 19.58%. The bottom line PAT was also up 65.7% at Rs.326.50 crore leading to the PAT margins seeing expansion from 10.02% to 16.13% in current quarter.

The operating margins of Mindtree have surely moved up to 19.58% but still way below other major IT companies. For example, Wipro and HCL Tech have OPMs above 22% while Infosys and TCS have OPMs above 25%, due to predominance of high value clients. For the quarter, Mindtree added 8 new clients taking its total tally of clients to 276.

Manpower attrition was down at 12.5%, which is good but still way off competition. The business model of Mindtree revenues is skewed towards communication and tech followed by BFSI. Its travel and leisure vertical underperformed, which is not surprising.