Mindtree

The company had a write back of Rs.37 crore, which in turn boosted its other income from Rs.20 crore (YoY) and Rs.13 crore in Q4FY17 to Rs.65 crore in current Q1and this is primarily what helped Mindtree end the first quarter with a net profit of Rs.122 crore – up 25% (QoQ) but down 1.5% (YoY). The company stated that high visa costs had an impact of 150 bps, currency fluctuations had 90 bps on the margins this quarter. 

Its revenue from operations fell over 2% (QoQ) to Rs.129 crore. Its revenues across all geographies showed a decline – USA was down 70% as percentage of total revenue, Europe was down 21% while India and RoW was down 9%.

Its revenue rose 1.2% (QoQ) to $ 200.1 million in constant currency terms. The company has managed to keep employee costs constant but this is expected to change soon as effective 1^st July 2017, it has hiked salaries for 70% of its employees and this wage hike is expected to impact the margins by around 1.5%.It had also announced a buyback of Rs.270 crore of shares and this will impact the margins in Q2FY18. Going forward it expects growth in single digits nad has accordingly lowered its targets.