Mindtree
The midcap IT company posted a sharp 7% (QoQ) drop in net profit at Rs.123 crore and growth is revenue was flat at Rs.1328 crore v/s Rs.1320 crore in Q4. Dollar terms, revenue was up 2% at $199 million but net profit fell 6% at $ 18.5 million. Disappointing was the 12% drop in operating profit at Rs.195 crore and its margins fell 200 bps to 16.8%. Of this 200 bps fall, half or 100 bps fall was due to visa expenses, operational costs and 80 bps of this, can be blamed entirely on Bluefin. In Q2 though there would be no visa expenses, it would have to account for salary hikes, which becomes effective from 1st July.
The fall in bottomline and flat topline was on account of slow ramp up by some projects and also because of the numbers of Bluefin Solutions, a UK-based company it had acquired in July last year for $66 million, which is yet to be fully assimilated. Employee attrition rose from 15.7% to 16.5% (QoQ) and employee count was down by 500 at 16,110. As at 30th June 2016, it has 343 active clients and it added one client in $ 10 million category, taking total to 16. The real improvement in performance can be seen only from H2FY17.