IT firm Mindtree posted a 27 per cent fall in consolidated net profit at Rs 97.2 crore for the March quarter, hit by foreign exchange loss. The Bengaluru-based firm had registered a net profit of Rs 132.7 crore in the year-ago period. Its revenue also fell marginally year-on-year to Rs 1,318.1 crore in the quarter under review. The lower-than-expected profit came on account of a foreign exchange loss of Rs 22.8 crore, compared to a gain of Rs 3.1 crore in the year-ago period. Mindtree added a 20 new clients in the fourth quarter of 2016-17. This is lesser than the 21 new customers that came on board in the previous quarter and 37 in the year-ago period. The results were announced after the trading hours.
The scrip closed at Rs 442.25 apiece, down marginally from the previous close on the BSE. For the year ended March 31, Mindtree's net profit fell 24.2 per cent to Rs 418.6 crore, while revenue was up 12.1 per cent to Rs 5,236.4 crore as against the previous fiscal. However, the mid-sized IT firm remains confident of a double-digit growth in the ongoing fiscal. "The deal pipeline is very strong, we had very strong deal closures in Q3 and Q4... In terms of revenue outlook, we expect to grow in double digit for next year (FY2017-18)," Mindtree CEO and Managing Director Rostow Ravanan said on a conference call. He added that the company will also apply for lesser number of visas this year compared to previous fiscal. Asked about his views on the visa curbs being implemented by various countries, he said the environment is giving an indication of uncertainty. Any changes in work visa norms can affect the movement of labour and push up operational costs for IT companies that use these permits to send employees to work on client sites. The US accounted for close to 70 per cent of the quarter's revenues, while Europe and India contributed about 20 per cent and 3 per cent, respectively. Digital services -- which includes services related to social media, mobility, analytics and cloud -- accounted for about 40 per cent of the revenues in the quarter under review. In dollar terms, Mindtree's net profit fell 25.9 per cent to USD 14.4 million, while revenue grew marginally to USD 195.6 million. Constant currency growth stood at 2 per cent quarter- on-quarter. For the year ended March 31, its net profit declined 24.2 per cent to Rs 418.6 crore, while revenue was up 12.1 per cent to Rs 5,236.4 crore as against the previous fiscal. Its total headcount was higher at 16,470 at the end of the said quarter, up from 16,099 people in the preceding quarter. The trailing 12 months attrition stood at 15.1 per cent. The company saw contract closures of USD 926 million during the last fiscal. The Board of Directors has recommended a final dividend of 30 per cent (Rs 3 per equity share) for the year ended March 31, 2017, subject to shareholder approval.