MindTree slips after weak Q2 earnings

MindTree fell 4.78% to Rs 456.20 at 11:13 IST on BSE after consolidated net profit fell 23.2% to Rs 94.80 crore on 2.4% decline in revenues to Rs 1295.40 crore in Q2 September 2016 over Q1 June 2016.

The result was announced after market hours on Friday, 21 October 2016.

Meanwhile, the BSE Sensex was up 26.52 points, or 0.09%, to 28,103.70.

On BSE, so far 1.22 lakh shares were traded in the counter, compared with average daily volume of 79,569 shares in the past one quarter. The stock hit a high of Rs 464.60 and a low of Rs 452.10 so far during the day. The stock hit a record high of Rs 803.50 on 4 March 2016. The stock hit a 52-week low of Rs 452.10 on 24 October 2016. The stock had underperformed the market over the past 30 days till 21 October 2016, faling 5.99% compared with 2.42% decline in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 14.02% as against Sensex's 0.99% rise.

The mid-cap company has equity capital of Rs 167.96 crore. Face value per share is Rs 10.

MindTree's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell 16.9% to Rs 162.10 crore in Q2 September 2016 over Q1 June 2016. EBITDA margin was reported at 12.5% in Q2 September 2016, lower than 14.7% in Q1 June 2016.

In a separate announcement after market hours on Friday, 21 October 2016, the company said that its board at its meeting on 18 July 2016 had approved the scheme of amalgamation of Magnet 360, LLC with Mindtree. The board, at its meeting held on 21 October 2016 have decided not to pursue further and has approved withdrawal of the scheme of amalgamation of Magnet 360, LLC with Mindtree.

MindTree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. Born digital, Mindtree takes an agile, collaborative approach to creating customized solutions across the digital value chain. At the same time, our deep expertise in infrastructure and applications management helps optimize your IT into a strategic asset. Whether you need to differentiate your company, reinvent business functions or accelerate revenue growth, we can get you there.

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