After posting its best show in 16 years in December quarter, the company posted a 12% (QoQ) drop in consolidated net profit at Rs.1683 crore, much below what most analysts and brokerage houses had expected. Dollar revenue was flat and rupee revenue fell marginally by 0.2% to Rs.9267 crore. EBIT came in 10.5% lower at Rs.1977 crore. EBITDA margin was down at 21.3%, a slip of 250 bps.

The company has blamed the poor performance on operating margin metrics and enhanced working capital needs affecting cash flows. Cross currency volatility too affected margins. In terms of geography, Americas grew 13.6%, Europe rose 22% and Rest of world grew 6.9%. And in terms of verticals, telecom did the best, growing 23.5%, lifesciences & healthcare rose 21.1%, public services rose 16.6%, fianncal services 15.4%, retail 14.8% and manufacturing 14.4%.

In terms of client additions, it added 16 new ones in the US$ 50 million + category, one new client in US$30 million and 4 new on US$20 million. It added 3944 employees during the quarter, taking the total employee tally to 1,04.184. Attrition dropped from 16.4% to 16.2% (QoQ) and from 16.9% (YoY). Utilisation dropped to 81.9% from 82.9% (QoQ).