Leading software services vendor Mindtree reported Rs 135 crore consolidated net profit for the second quarter of fiscal 2019-20, registering 45 percent sequential growth from Rs 95 crore a quarter ago.

Net profit on an annual basis, however, declined 35 percent from Rs 206 crore in the same period last year. The Bangalore-based firm's EBIT margins came in at 9.3 percent versus CNBC-TV18 poll of 9.8 percent. Meanwhile, attrition continues to torment the company.

Throwing light on the quarter and the outlook, Debashis Chatterjee, MD and CEO, said the company expects margins to expand in the rest of the year. “If you look at Q2 then Q3 will be better than Q2 and Q4 will be better than Q3. It is difficult to call out numbers but we have a plan in place, we want to expand the margins and take it back to where we were, at least to that point by the end of this year,” he said.

He said the deal pipeline has been good. The company has already started delivering on the deals signed last quarter. It has signed some deals this quarter and is hoping that revenues will start kicking in by next quarter.

Commenting on the profits, he said, “In the last quarter, we had one-off payments. Typically there are wage increases in Q1, Q2, so if one were to factor all this we saw a dip but there are other things that are working in our favour like currency. Overall profit is in line with EBITDA.”

Talking about total contract value (TCV), he said overall TCV they signed in Q2 was 13.3 percent year over year, which is a good sign.

The deal pipeline as of now looks good but there are micros cannot be predicted, said Chatterjee. “If I specifically look at my portfolio, for example for the first time we saw BFSI coming back into growth and that is very positive news for us. BFSI has grown on back of insurance in some tier II banks. That is the nature of the portfolio we have and with the portfolio we have, we are feeling very confident,” he said.

First Published:Oct 17, 2019 3:34 PM IST