Mindtree net declines 16% yearly for 2019-20

Bengaluru, April 24 (IANS) Leading software major Mindtree reported a Rs 631 crore net profit for fiscal 2019-29, registering 16.3 per cent annual decline from a year ago.

In a regulatory filing on the BSE, the city-based IT firm said revenue for the fiscal under review (FY20), however, grew 10.6 per cent year-on-year to Rs 7,764 crore.

Under the International Financial Reporting Standards (IFRS), net income for FY20 declined 17.7 per cent YoY to $88.5 million but revenue grew 8.7 per cent YoY to $1,089 million.

For the fourth quarter of FY20, net profit grew 3.9 per cent YoY to Rs 206 crore, which is 4.7 per cent up sequentially from a quarter ago.

Revenue for the quarter under review (Q4) also grew 11.5 per cent YoY to Rs 2,051 crore, which is 4.3 per cent up sequentially from a quarter ago.

Mumbai-based infrastructure construction major Larson & Toubro (L&T) acquired 60.1 per cent controlling stake in the outsourcing firm from its co-founders and senior executives.

L&T had set its eyes on taking over the 21-year-old firm in a hostile bid after it purchased 20.32 per cent equity stake of The Coffee Day late founder V.G. Siddhartha for Rs 3,300 crore on March 18, 2019.

Later, L&T increased its holding with more shares from the market and by making 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 gain control.

The company had 307 customers by fiscal-end and number of $10-million account clients increased to 23, with the addition of one client during the fiscal.

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

With 17.4 per cent attrition, the company had 21,991 employees by fiscal-end.

The company’s board recommended 100 per cent final dividend or Rs 10 per share of Rs 10 face value for the fiscal under review.

The company was co-founded in 1999 by former techno-executives of global software major Wipro such as Ashok Sootha, Subroto Bagchi, Krishnakumar Natarajan and Anjan Lahiri.

The company’s blue-chip scrip of Rs 10 per share gained 15.80 at the end of trading on the BSE to close at Rs 780.70 as against Thursday’s closing rate of Rs 764.90 and opening price of Rs 770.