Mindtree Q2 net slides 37 pc to Rs 95 cr

IT firm Mindtree reported a 37 per cent fall in consolidated net profit at Rs 94.8 crore in the September quarter, hurt by slower ramp-ups and cautious spending by some large clients across verticals.
The Bengaluru-based firm's net profit stood at Rs 150.8 crore in the July-September quarter last fiscal. Its revenue grew 11 per cent to Rs 1,295.4 crore in the quarter under review from Rs 1,165.7 crore in the year-ago period.
"The volatile macroeconomic environment has resulted in slower ramp-ups and cautious spending in a few large clients across our verticals," Mindtree CEO and MD Rostow Ravanan said.

He added that the company is, however, "encouraged" by its new wins and strong pipeline.
Mindtree had already warned of its revenue in the second quarter to be lower than the first quarter, impacted by cross-currency movements, project cancellations and slower ramp-ups in a few large clients across different verticals.
"With our investments in digital and managed services, our strategic direction will continue to drive positive outcomes in the medium term," he said.

In dollar terms, Mindtree's net profit fell 39.1 per cent to USD 14.1 million in the July-September 2016 quarter, while revenue was up 7.4 per cent to USD 193 million.

Mindtree had a total headcount of 16,219 people with trailing 12 month attrition at 16.4 per cent at the end of the September quarter.
The board of directors has recommended an interim dividend of Rs 3 per equity share for the quarter ended September 30, 2016.