Mindtree's net profit drops in Q1FY17

On July 18, stock price of Mindtree has declined by 3.56 per cent or Rs23.25 to Rs 614 after the unexpected Q1FY17 results. The software service company has posted Rs 1235 core net profit in Q1FY17 which is 7.14 per cent lower than the Q4FY16 and 3.74 per cent lower than the previous year for the same period. Due to such an unexpected result the stock price has hit the day’s lowest of Rs 611 and closed at Rs 614.

Revenue from operation of the company has  grown by 0.55 per cent to Rs13276 crore in Q1FY17 from Rs 13203 crore in Q4FY16. Whereas the EBITDA has declined by 11.56 per cent to Rs 1951 core in Q1FY17 from Rs 2206 core in Q4FY16.

Meanwhile revenue of the company has grown by 35.82 per cent on Q1FY17 from Rs 9775 core in previous year for the same period. Whereas the EBITDA has risen by 16.69 per cent in Q1FY17 from Rs 1672 crore in previous year for the same period.

The company broadly operates in four segments. On a QoQ basis the segment reflecting the highest growth as per the revenue is Technology, Media and Services segment which has grown by 2.75 per cent from the previous quarter;followed by Banking,Financial services and Insurance, which has grown by 2.32 per cent; Retail, CPG and Manufacturing has grown by 1.49 per cent. Whereas the Travel and Hospitality segment has seen a de growth of 8.19 per cent.

Mindtree Limited is an India based international Information Technology (IT) Consulting and Implementation Company. The company operates in two units: production engineering (PE) services and IT services. PE services include research and development (R&D) services and software product engineering (SPE).