Mindtree loses on poor YoY show

Mindtree is another big loser on the bourses today. And the reason is once again the performance for Q3FY17. The stock slipped down almost 3% to Rs.471 levels; it has recovered from there and is now at Rs.475 levels.

The company, for the quarter, on a YoY has posted a poor show – net profit down 26% to Rs.103 crore on a 7% rise in revenue at Rs.1295 crore. But for an IT company, it is always the QoQ performance which matters and not YoY.

QoQ, its net profit grew 9% and revenue was flat. Its dollar revenue was down 0.5% at $192 million. EBITDA for the quarter was up 7% at Rs.174 crore and margins improved from 12.5% to 13.4%.

In terms of its employee metrics, attrition rate was down from 16.4% to 16.1% and during the quarter, it actually laid back 120 employees as against having added 109 in Q2. Its utilization rate (including trainees) was more or less same at 71.3% v/s 71.4%. Its total employee strength is at 16,099.

The company said that it had added 21 new clients in Q3 v/s 18 new added in Q2 and its total active client number stands at 348.