Sharemasterindia.com: Mindtree shares jumped as much as 5 per cent to intraday high of Rs 1,286 on
Friday following the outsourcer's Q1 earnings announcement on Thursday.
Mindtree missed constant currency revenue growth estimates and also reported a decline in profitability in the June quarter, but strong sales guidance for the September quarter cheered investors.
Mindtree's revenues in constant currency grew 5.2 per cent quarter-on-quarter to $154.9 million; analysts polled by NDTV expected the company to deliver 5.6 per cent growth.
Mindtree's EBIT margin (operating margin) declined 190 basis points sequentially to 18.4 per cent in Q1 on account of higher visa costs. Analysts were expecting Mindtree to report margin at 20.4 per cent in Q1.
In rupee terms, Mindtree reported a net profit of Rs 138 crore on revenues of Rs 982 crore. Mindtree's attrition rate increased in Q1. Its trailing twelve month attrition as of June 30, 2015 stood at 18.4 per cent, which is a 14-quarter high.
Management Guidance on Q2:
Mindtree said organic growth and margins in Q2 will be better than Q1 despite wage hikes. Mind Tree is confident of beating the IT industry average growth projection of 12-14 per cent in this financial year.
Mindtree also announced acquisition of two companies - Bluefin Solutions & Rational Solutions Inc- on Thursday. These acquisitions will be earnings accretive in FY16, Mindtree said.
As of 10.21 a.m. shares in Mindtree traded 4.08 per cent higher at Rs 1,275.55 apiece, outperforming the broader Nifty, which was up 0.05 per cent
Mindtree missed constant currency revenue growth estimates and also reported a decline in profitability in the June quarter, but strong sales guidance for the September quarter cheered investors.
Mindtree's revenues in constant currency grew 5.2 per cent quarter-on-quarter to $154.9 million; analysts polled by NDTV expected the company to deliver 5.6 per cent growth.
Mindtree's EBIT margin (operating margin) declined 190 basis points sequentially to 18.4 per cent in Q1 on account of higher visa costs. Analysts were expecting Mindtree to report margin at 20.4 per cent in Q1.
In rupee terms, Mindtree reported a net profit of Rs 138 crore on revenues of Rs 982 crore. Mindtree's attrition rate increased in Q1. Its trailing twelve month attrition as of June 30, 2015 stood at 18.4 per cent, which is a 14-quarter high.
Management Guidance on Q2:
Mindtree said organic growth and margins in Q2 will be better than Q1 despite wage hikes. Mind Tree is confident of beating the IT industry average growth projection of 12-14 per cent in this financial year.
Mindtree also announced acquisition of two companies - Bluefin Solutions & Rational Solutions Inc- on Thursday. These acquisitions will be earnings accretive in FY16, Mindtree said.
As of 10.21 a.m. shares in Mindtree traded 4.08 per cent higher at Rs 1,275.55 apiece, outperforming the broader Nifty, which was up 0.05 per cent
