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MindTree is trading lower by 3% at Rs 824, extending its previous day’s 2% fall, after reporting 20% quarter-on-quarter (qoq) drop in its standalone net profit at Rs 79 crore for the quarter ended March 2013 due to foreign exchange loss of Rs 15 crore.
The company’s EBITDA (earnings before interest, tax and amortization) and EBIT margins declined by 141bp and 138bp qoq to 19.0% and 16.5%, respectively. Total operational revenues however, grew 3.8% at Rs 612 crore qoq.
“The profit margins of the company declined due to increase in SG&A expenses, increase in employee costs due to freshers getting added into the system and decline in utilization level,” says analyst at Angel Broking.
Meanwhile, MindTree’s management indicated that it remains hopeful of FY2014 turning out to be a better revenue growth year as compared to FY2013 because of pick up in client spending and with the company’s greater concentration on mining its focus clients.
The stock opened at Rs 848 and hit a low of Rs 818 on NSE. A combined around 30,000 shares have changed hands on the counter in noon deals on NSE and BSE.
The company’s EBITDA (earnings before interest, tax and amortization) and EBIT margins declined by 141bp and 138bp qoq to 19.0% and 16.5%, respectively. Total operational revenues however, grew 3.8% at Rs 612 crore qoq.
“The profit margins of the company declined due to increase in SG&A expenses, increase in employee costs due to freshers getting added into the system and decline in utilization level,” says analyst at Angel Broking.
Meanwhile, MindTree’s management indicated that it remains hopeful of FY2014 turning out to be a better revenue growth year as compared to FY2013 because of pick up in client spending and with the company’s greater concentration on mining its focus clients.
The stock opened at Rs 848 and hit a low of Rs 818 on NSE. A combined around 30,000 shares have changed hands on the counter in noon deals on NSE and BSE.
