Mindtree in the red today

Mindtree had hit a new 52-week high yesterday at Rs.1607 and today, it is currently down almost 1.5% at Rs.1568 with an intra day low at Rs.1526.

The company released an update for Q4FY16 yesterday and the outlook for the quarter is not good though it remains optimistic about FY16 and FY17 ending on much higher notes

The company stated that in dollar terms, it is expected to report only a marginal QoQ revenue growth due to delay in commencement of few projects in Retail and Consumer Packaged Goods vertical and BFSI. Consequently, operating margin of the company for Q4 is expected to show a decline vis-à-vis Q3.

But at the same time, it is expecting to end FY16 on a much higher note, exceeding NASSCOM’s growth estimate of 10.3%. It is estimating to end FY17 also with a growth exceeding NASSCOM’s target of 10-12%.