Mindtree net dips 27% to Rs 97 cr on strong rupee

Revenue dropped by 0.2% to Rs 1,318 cr

Mid-size IT services firm Mindtree saw 26.8 per cent decline in net profit to Rs 97.2 crore for the quarter ending March 31, 2017 due to appreciation of Rupee against the US dollar.

The Bengaluru-based company's revenue dropped by 0.2 per cent to Rs 1,318 crore during the fourth quarter.

During the same period last fiscal, Mindtree reported a net profit of Rs 132 crore on revenues of Rs 1,320 crore.

"The biggest reason for decline in profit was the foreign exchange loss as Indian Rupee appreciated till the last day of Q4," said Rostow Ravanan, chief executive officer and managing director, Mindtree.

For the whole year (FY17), the company reported a net profit of Rs 418 crore on revenues of Rs 5,236 crore. Revenues grew more than 11 per cent in FY17 in constant currency terms.

Mindtree is, however, confident of a double-digit growth as the company is banking on better deal wins in third and fourth quarters in the last fiscal and its strength in digital technology offerings.

Ravanan added that the company's cost for visa applications would come down this fiscal as it filed for less number of visas this year.