Mindtree’s Q2 profit declines 35%
Information and technology services company Mindtree reported a 35% decrease in quarterly profit, hurt by an increase in expenses.
The NSE-listed company’s net profit fell to Rs 135 crore or Rs 8.20 per share in the second quarter ended September 2019 from Rs 206 crore or Rs 12.54 per share, a year earlier, it said in a regulatory filing.
Total expenses increased to Rs 1,751 crore this quarter compared to Rs 1,526 crore in the corresponding quarter last year.
Revenue rose 9% to Rs 1,914 crore.
Mindtree’s board also declared an interim dividend of 30% that is Rs 3 per equity share of Rs 10 each.
The Bengaluru-headquartered firm, majority-owned by engineering conglomerate Larsen & Toubro, had 343 active clients at the end of September 2019.
It had a total headcount of 21,267 with trailing 12-month attrition at 16.5% compared to a headcount of 19,402 and a trailing attrition rate of 13% a year ago.
In July this year, multiple top-level exits plagued Mindtree’s board, including the then chief executive officer Rostow Ravanan’s resignation.
The board resignations had followed Larsen & Toubro’s acquisition of a 60% stake in the Indian IT services firm.
Mindtree had named former Cognizant executive Debashis Chatterjee as its new managing director and chief executive officer only two months ago.