Mindtree Shares Down Over 4% On Q1 Earnings Disappointment

Shares of IT firm Mindtree today fell by over 4 per cent, after the company reported a 1.5 per cent drop in consolidated net profit for the June quarter. After starting Thursday's session on a lower note, the company further declined 4.29 per cent to Rs 485 on the Bombay Stock Exchange (BSE). On the National Stock Exchange (NSE), the stock went down 4.27 per cent to Rs 485. Mindtree on Wednesday reported a 1.5 per cent decline in consolidated net profit at Rs 121.7 crore for April-June, impacted by currency volatility, visa costs and one-time impact on business of one of its subsidiaries.

The "temporary volatility" in the subsidiaries' businesses has promoted Mindtree to slash its revenue growth outlook to "high single-digit" from the earlier projection of double-digit rise in top line.

Total income increased marginally to Rs 1,354.9 crore in the June quarter, from Rs 1,347.4 crore in the year-ago period.

In dollar terms, Mindtree's net profit grew 2 per cent to $18.9 million in the said quarter while revenue was up marginally to $200.1 million from the year-ago period.