Mindtree Retains All Top Clients Despite Management Changes, Says CFO
Mindtree Ltd. has managed to cling on to its top clients despite experiencing significant management changes in the quarter ended September, according to its Chief Financial Officer Pradip Menon.
“This is a quarter of significant changes in management in the company. Despite that, I am happy to report that all our top clients are with us,” Menon told BloombergQuint in an interview. The information technology company’s services have helped create value for its clients, he said.
Mindtree had appointed Debashis Chatterjee as its chief executive officer and managing director in August. This was the first top management change at Mindtree after it was taken over by engineering behemoth Larsen and Toubro Ltd. The company had also appointed SN Subrahmanyan as its non-executive vice-chairman who currently serves as the L&T group’s managing director and chief executive.
“The new management of the board has met all the top clients and from the conversations, we’ve had so far, we don’t see any of our clients scuttling our growth,” Menon said.
Rostow Ravanan, who was part of Mindtree’s founding team, had resigned back in July as Mindtree’s CEO after L&T successfully completed its open offer through a hostile takeover to acquire the IT services company despite resistance from the founder-promoters.
Mindtree Q2 Results 2019-20:
Key Highlights (QoQ)
- Revenue in dollar terms rose 2.7 percent to $271 million
- Revenue in rupee terms rose 4.4 percent to Rs 1,914 crore
- Net profit rose 45.6 percent to Rs 135 crore
- EBIT rose 34.8 percent to Rs 248 crore
- Margin stood at 13 percent versus 10 percent