Mindtree shares drop over 5 pc on Q2 revenue warning

Mindtree shares today fell over 5 per cent after the company said it expects a drop in its second quarter revenue.
The stock tanked 5.13 per cent to close at Rs 521.70 on BSE. During the day, it dropped 8.25 per cent to Rs 504.50 -- its 52-week low.
At NSE, shares of the company slipped 4.34 per cent to end at Rs 525.
The company's market capitalisation fell by Rs 473.14 crore to Rs 8,755.86 crore.
"The company expects Q2 FY17 revenue to be lower than the previous quarter. The decline is expected due to cross-currency movements, project cancellations and slower ramp-ups in a few large clients across different verticals and continued weakness in its UK-based subsidiary Bluefin," Mindtree had said in a BSE filing on Friday.

Margins are going to be lower than planned with a decline in EBITDA margins in the second quarter compared to the April-June period of this fiscal, it said. In light of its weak revenue outlook, the Bluefin business is expected to report an EBITDA loss for the quarter, it added.
Mindtree has implemented a range of operational efficiency improvements and cost control measures. The savings derived from these initiatives may not be sufficient to offset the revenue slowdown in the second quarter of FY17.