MindTree posts mixed results, acquires Magnet 360

MindTree recently declared its results. The company's consolidated revenue increased by 3.87 per cent to Rs 1215 crore in Q3FY16 from Rs 953 crore in Q2FY15. Its total expenditure increased by 4.92 per cent to Rs 1000 crore in Q3FY16 on a quarterly basis.

MindTree's EBITDA declined by just 0.79 per cent to Rs 215 crore in Q3FY16 as compared to previous quarter. The company's EBITDA margin contracted by 83 basis points to 17.68 per cent in Q3FY16 on a quarterly basis. It's PAT also decreased by 4.61 per cent to Rs 151 crore in Q3FY16 as compared to previous quarter. MindTree's PAT margin contracted by 111 basis points to 12.42 per cent on a quarterly basis.

Considering nine months result, MindTree's revenue increased by 27.29 per cent to Rs 3365 crore in 9MFY16 as compared to same period in previous fiscal year. The company's EBITDA too rose by 13.93 per cent to Rs 605 crore in 9MFY16 on a yearly basis. Its PAT also increased by 9.74 per cent to Rs 447 crore in 9MFY16 as compared to same period in previous financial year.

On the 'segment wise revenue' front, MindTree earned 30.23 per cent from Technology Media and Services segment; 25.11 per cent from Banking segment; 20.36 per cent from Retail segment; 15.63 per cent from Travel & Hospitality segment; and remaining 8.67 per cent from others segment during Q3FY16.

MindTree has 294 active clients as of December 31, 2015. The company has headcount of 16243, and attrition rate stands at 16 per cent in trailing 12 months. It added 1306 employees during the quarter on a gross basis.

MindTree's board of Directors approved acquisition of Magnet 360 Llc. The acquisition will help the company to strengthen its digital and cloud services offerings. The total deal value is USD 50 million (Rs 338.28 crore). Magnet 360 operates in USA, and has reported revenue of USD 25 million (Rs 169.14 crore) as of CY15.

MindTree approved an issue of bonus shares to the shareholders in the ratio of 1:1, i.e. one additional equity share for every existing equity share.The share price of MindTree increased by 2.06 per cent on bourses in early trades and is trading at Rs 1442 on an intraday basis.

Mindtree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. The company takes an agile, collaborative approach to creating customized solutions across the digital value chain. Its services include application development and maintenance; data analytics; digital services ;Enterprise Application Integration (EAI); and Business Process Management (BPM); Engineering Research and Development (R&D); enterprise application services; independent testing; infrastructure management services; and IT strategy and consulting.