Mindtree net profit grows 7%

Mindtree on Thursday said it will beat the Nasscom growth guidance for the sector comfortably on the back of good set of numbers it posted in Q1 of FY16 and healthy order-booking. The company also achieved the milestone of crossing $150 million in revenues in a single quarter.

In the quarter ended June, it reported a 6.8 per cent growth in its net profit at Rs 138.2 crore compared with the same quarter in the previous financial year. The revenue at Rs 981.6 crore grew 16.4 per cent on a year-on-year basis backed by a strong growth in the the key North American market and banking and financial services vertical. On a sequential basis (compared with the trailing quarter), the net profit grew 7.4 per cent while the revenue went up 6.9 per cent. However, one of the negative surprises was its operating profit margin which declined by around 189 basis points at 17.6 per cent. The company said it was primarily due to the impact of wage hike as well as a spike in visa cost since it decided to go for more number of visas due to a good pipeline.