New Delhi, Jul 14 (PTI) IT firm Mindtree on Tuesday said its consolidated net profit more than doubled to Rs 213 crore in the June quarter from the year-ago period, and it is seeing recovery that would help it log better performance in the second quarter of the ongoing fiscal than the first quarter.

The Bengaluru-based company's net profit rose 129.8 per cent from Rs 92.7 crore in the same period last year. Its revenue grew 4.1 per cent to Rs 1,908.8 crore in the quarter under review from Rs 1,834.2 crore in the year-ago period, the company said in a regulatory filing.

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"If you look at what happened in Q1 last year, there was a one-off hit due to the special bonuses that were paid off... that is why you probably see the spike this quarter...the travel, transport and hospitality (TTH) vertical was one which got most affected as soon as the pandemic hit, there was a significant drop in that practice," Mindtree CEO and Managing Director Debashis Chatterjee said.

He added there was a "temporary pause" in other segments like CPG (consumer packaged goods) and CMT (communications, media and technology), but conversations are returning in these areas.

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"...the conversations have come back. And we see good traction in those segments, and closures are taking some time. If you look at our orderbook that was almost to the tune of USD 390 million, which gives a good indication that there are deals that we are winning. Overall, our pipeline is fairly healthy...we expect our Q2 to be better than Q1," he said.

Shares of the company closed at Rs 973 apiece on Tuesday on BSE, 3.46 per cent lower from the previous close.

In dollar terms, Mindtree's net profit rose 111.7 per cent to USD 28.3 million, while revenue declined by 4.1 per cent to USD 253.2 million in June 2020 quarter over the year-ago period.

"In terms of decline in revenues, a bulk of the decline is led by the impact of COVID on travel because this happened pretty immediate and pretty drastic...there were some other verticals also which were a little soft," Chatterjee said.

CMT accounted for 51 per cent of Mindtree's June 2020 quarter revenue, banking, financial services and insurance (BFSI) contributed 20.3 per cent, retail, CPG and manufacturing 20.6 per cent, and travel and hospitality made up 8.1 per cent of the revenue.

In terms of geography, the US contributed 79 per cent of the quarter's revenue, Europe accounted for 13.1 per cent, while India and Rest of the World (RoW) contributed 4.1 per cent and 3.8 per cent, respectively.

Asked about his views on the US' proclamation suspending issuance of H-1B visas, Chatterjee said the company does not anticipate facing any immediate issues.

"If you look at our workforce in the US, more than 65-70 per cent of our workforce in the US are local hires. So because of that factor, I don't see any immediate issues that we will face as a result of this proclamation."

Last month, US President Donald Trump had issued a proclamation to suspend issuing H-1B visas -- popular among Indian IT professionals -- along with other foreign work visas for the rest of the year, aimed at helping millions of Americans who have lost their jobs due to the current economic crisis.

IT services major Tata Consultancy Services had termed the move as "unfortunate and unfair".

At the end of June 2020 quarter, Mindtree's active client base stood at 292, and six new clients were added during the quarter.

The company had 21,955 employees at the end of the June quarter with trailing 12-months attrition at 16.6 per cent.

With a client-first approach, future-ready talent coupled with increase in digital demand, Mindtree is confident of strengthening its position in the market and drive profitable growth in these unprecedented times, Chatterjee said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)