Mindtree's scrip sees fall after Q2FY17 guidance
DSIJ Intelligence / 06 Sep 2016
Mindtree’s management is expecting Q2FY17 revenue to be lower than the previous quarter. The decline is expected due to cross-currency movements, project cancellations and slower ramp-ups of a few large clients across different verticals and continued weakness in its UK-based subsidiary, Bluefin.
Mindtree’s management is expecting Q2FY17 revenue to be lower than the previous quarter. The decline is expected due to cross-currency movements, project cancellations and slower ramp-ups of a few large clients across different verticals and continued weakness in its UK-based subsidiary, Bluefin.
Mindtree’s Bluefin business is expected to report an EBITDA loss for upcoming quarter. The company has implemented a range of operational efficiency improvements and cost control measures. The uncertainties in the Bluefin business are likely to continue for a few more months given the volatile macroeconomic environment in Europe.
Mindtree’s slower revenue momentum in H1FY17 will delay the aspiration to grow EBITDA margins over FY16. The cost saving measures and other related initiatives will help the company deliver a higher margin in H2FY17 over H1FY17. Meanwhile, it continues to expect annual revenue growth to be higher than the NASSCOM industry average.
The share price of Mindtree has dropped by 7.8 per cent on bourses in early trades; and is trading at Rs 512.05 on an intraday basis.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.