Mindtree shows transition pain

Mindtree is very much in the limelight today but not in a good way. Its earnings for Q1FY20 have been very disappointing as the upheaval in the management change seems to have taken a toll. The stock price hit a new low at Rs.675.05.

Though it reported record deals worth $324 million, this is yet to get translated into good earnings. For the quarter, its dollar revenue rose less than 1% (QoQ) at $264.20 million while revenue remained flat at Rs.1834 crore.

Its net profit was down 53% at Rs.93 crore while operating profit fell 31% at Rs.193 crore.

Operating profit margin was down from 15.2% to 10.4%.

Employee attrition rate crossed 15% on a trailing 12-month basis.