Mindtree hits 52-week low after weak Q1 numbers

Mindtree was down 6.15% to Rs 705.7 at 10:13 IST on the BSE after consolidated net profit fell 53.27% to Rs 92.7 crore on 0.28% decline in net sales to Rs 1834.20 crore in Q1 June 2019 over Q4 March 2019.

The announcement was made after market hours yesterday, 17 July 2019.

Meanwhile, the S&P BSE Sensex was down by 58.78 points, or 0.14% to 39,159.19.

On the BSE, 3.38 lakh shares were traded in the counter so far compared with average daily volumes of 76000 shares in the past two weeks. The stock had hit a high of Rs 725.2 so far during the day. The stock had hit a low of Rs 675.05 so far during the day, which is also 52-week low for the counter. It hit a 52-week high of Rs 1181.9 on 11 September 2018.

Mindtree's earnings before interest, tax, depreciation and amortization (EBITDA) decreased 34.3% to Rs 231 crore in Q1 June 2019 over Q4 March 2018. The company reported EBITDA margin of 14.1% in Q1 June 2019 as against 15.2% in Q4 March 2018.

Rostow Ravanan, CEO & managing director, Mindtree said that We have delivered stable results in the face of many uncertainties, reflecting the unique strengths of Mindtree, said . This quarter saw us achieve an all-time high contract closures which sets the pace for the rest of the year. While the external factors pose some challenges, nonetheless our focussed strategy and strong client relationships make us confident of delivering above Industry growth rates in FY 20 as well.

Mindtree is a global IT consulting and services company.

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