Mindtree Q2 net up 37% at Rs 95 cr y-o-y

In US dollar terms, revenue declined by 3% q-o-q to $193 mn

Bangalore-headquartered mid-cap IT services firm Mindtree’s second quarter numbers were below market estimates and disappointed the Street.

The company reported net profit at Rs 95 crore for the Q2FY17 up 37.1 per cent year-on-year basis but dropped 23 per cent sequentially. Topline grew 11.1 per cent y-o-y at Rs 1,295 crore, a decline of 2.4 per cent q-o-q.

According to Bloomberg estimate, the Street was expecting profits to drop by 7 per cent sequentially and topline shrink marginally by 0.5 per cent.

“The volatile macroeconomic environment has resulted in slower ramp-ups and cautious spending in a few large clients across our verticals,” said Rostow Ravanan, CEO & Managing Director, Mindtree.  “However, we are encouraged by our new wins and strong pipeline.  With our investments in digital and managed services, our strategic direction will continue to drive positive outcomes in the medium term.”

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In US dollar terms revenue declined by 3 per cent q-o-q to $193 million.