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Mindtree's Q4 casts doubts on immediate gains for L&T from the buyout

Lower deal wins, high attrition and management transition due to L&T's takeover to weigh on Mindtree's growth

Mindtree
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An attrition rate of 14.2 per cent in Q4 - highest in six quarters, could also keep employee costs elevated for Mindtree, apart from weighing on revenues

Shreepad S Aute
With Larsen and Toubro (L&T) lapping up ne­arly 20 per cent of Mind­tree’s promoter stake, the engineering and infrastructure major has taken its first step towards acquiring the information technology firm.

But Mindtree’s stock didn’t react much (up 0.38 per cent) on Tuesday to the development as the move was on expected lines, and the L&T stock was marginally in the red, down about half a per cent. However, going by Mind­tree’s Q4 show, the key question is how accretive will the buyout be for L&T in the near- to medium-term. Some operational parameters mirror the medium-term business pressures for

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First Published: Apr 30 2019 | 5:53 PM IST

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