BackMindtree profit up 6.2% to $12.9 million
Revenue rose 5.8% but firm's performance subdued on account of foreign exchange losses of $7.6 mn
Premium
Bangalore: Information technology (IT) and product engineering services company Mindtree Ltd posted a 6.2% increase in profit for the quarter ended September to $12.9 million from the year earlier, a performance that was subdued on account of foreign exchange losses.
Revenue rose 5.8% to $107.3 million. In rupee terms, the company recorded ₹ 596.3 crore in revenue and ₹ 72.2 crore in profits.
The company, which announced its results on Tuesday, said it incurred a foreign exchange loss of $7.6 million on account of the rupee strengthening in the September quarter.
The company lowered its forecast for the financial year to less than 11%, below the Nasscom industry lobby group projection for the IT sector as a whole.
“Uncertainty in the global economic environment is posing short-term challenges, delaying customer decisions," said Krishnakumar Natarajan, CEO and managing director, Mindtree.
The company was also seeing large deals taking longer to close and this was affecting growth projections for the coming year. “Our strategic investments are gaining momentum and we are focusing to successfully convert them into significant client wins," Natarajan added.
Mindtree’s results were broadly in line with expectations, said Ankit Somani, research analyst at Angel Broking. The foreign exchange loss affected profit after tax, but the company did recoup this through a lower tax outgo, he said. The revenue performance has been subdued for the past couple of quarters, but Mindtree has been one of the better performers on this and margins in the IT mid-cap space, he added.
The company added 11 customers in the last quarter and had 247 active customers as of September.
IT services head Anjan Lahiri said the market was less robust than it has been but the deals pipeline continues to be encouraging.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
