sortiwa
The Bengaluru-based company reported a profit of $28.2 million for the fourth quarter, up 1.8 per cent from the third quarter. Revenue for the quarter grew 1.2 per cent to $278.4 million.
Mindtree CEO Debashis Chatterjee said the softness is expected to due to an anticipated postponement in IT spends by clients. He added that the travel and hospitality sector has been most hit, followed by retail and manufacturing sectors. He said companies in the financial services segment were deferring spends but the hi-tech, media, and consumer goods sector may do well going forward.
IT companies are expected to see a significant slowdown in growth during this financial year as they grapple with the upheaval wrought by the Covid-19 pandemic. IT companies are experiencing pricing pressure, revenue loss due to lockdown in India and globally, client bankruptcies, and slower client decision making led by lower discretionary spending.
Mindtree said it was honoring all the job offers, including campus hiring. However, beyond that, the company hasn’t taken a call on wage hikes, salary cuts, or freezing promotions.
“We are not taking any decision regarding the workforce. Will take a decision when the picture gets clear,” Chatterjee said. “The situation is evolving and we are observing it closely.”
During the quarter, the company closed deals worth $393 million. It’s EBITDA margin improved 150bps compared to the previous quarter.
Source link
