Mindtree stock tanks nearly 9% on weak Q1 results

Shares of IT firm Mindtree tanked nearly 9 per cent today after the company posted 3.7 per cent drop in consolidated net profit for the June quarter.
The stock slumped 8.37 per cent to settle at Rs 562.45 on BSE. During the day, it plunged 8.7 per cent to Rs 560.35.
On NSE, it dropped 8.57 per cent to close at Rs 561.55.
The company's market valuation fell by Rs 861.36 crore to Rs 9,439.64 crore.
On the volume front, 4.60 lakh shares of the company were traded on BSE and over 50 lakh shares changed hands on NSE during the day.

Mindtree yesterday posted a 3.7 per cent drop in consolidated net profit to Rs 123.5 crore in the June quarter that witnessed "strong winds" in the form of slower project ramp-ups and loss from its Bluefin business.

The Bengaluru-based firm's net profit stood at Rs 128.3 crore in the April-June 2015 quarter. Its revenue grew 35.8 per cent to Rs 1,327.6 crore in the quarter under review from Rs 977.5 crore in the year-ago period.
"Overall, Q1 was a soft quarter compared to our previous quarters. There were delay in project ramp ups. There was strong competition in both traditional and digital businesses which led to a price compression...," Mindtree CEO and MD Rostow Ravanan had said in a conference call.

In dollar terms, Mindtree's net profit fell 8.7 per cent to USD 18.5 million in the April-June 2016 quarter, while revenue was up 29 per cent to USD 199 million from the year-ago period. About 40 per cent of its revenues came from digital services.