Mindtree Q3 Results: Media, BFSI Verticals Aid Revenue Growth
The software exporter’s margin widened 260 basis points in the quarter ended December.
Mindtree Ltd.’s revenue grew in the quarter ended December on the back of its high-tech media and banking, financial services and insurance segments’ performance, according to its Chief Executive Officer and Managing Director Debashis Chatterjee.
“This is a seasonally weak quarter (for the IT sector) but still we have done fairly well,” Chatterjee told BloombergQuint in an interview. “Also, margin expansions are exactly in line with our strategy and we see the current trend sustainable.”
The Larsen and Toubro Ltd.-owned software exporter’s margin widened 260 basis points to 15.6 percent in the three-month period. That comes as the company’s larger rivals—Infosys Ltd. and Wipro Ltd.—margins expanded in the period on account of a weaker rupee.
A weaker rupee benefits IT services providers as they bill a majority of their U.S. and global clients in dollars. The Indian rupee depreciated nearly 0.42 percent against the greenback in the period.
Mindtree Q3 Other Highlights:
- Dollar revenue rose 1.5 percent to $275 million.
- Revenue up 2.7 percent at Rs 1,965 crore.
- Ebitda up 23 percent to Rs 306 crore.
- Net profit rose 45.9 percent to Rs 197 crore.
Shares of the Bengaluru-based firm rose 4.3 percent compared with a 0.5 percent fall in the Nifty Index.
WATCH | Full interaction with Debashis Chatterjee here: