Mindtree reports 37% drop in Q2 net profit

Mindtree on Friday reported a drop of 37% in net profit for the quarter ended on September 30. The company posted consolidated net profit of Rs 94.8 crore in Q2FY17 as compared to Rs 150.8 crore during the same period last year.

On quarter-on-quarter basis, the net profit has been declined by 23.2%. In a regulatory filing, the company said that its total income has increased by 11% to Rs 1315.2 crore in Q2FY17 from Rs 1182.5 crore in Q2FY16.

Commenting on the results, Rostow Ravanan, CEO and Managing Director, Mindtree said, "The volatile macroeconomic environment has resulted in slower ramp-ups and cautious spending in a few large clients across our verticals. However, we are encouraged by our new wins and strong pipeline. With our investments in digital and managed services, our strategic direction will continue to drive positive outcomes in the medium term.”

The EBITDA margin in Q2FY17 stood at 12.5%, down from 18.8% in Q2FY16. 

Last month, the company had already lowered its financial expectations for the quarter. That time, the company had said that the decline is  expected due to cross-currency movements, project cancellations and slower ramp-ups in a few large clients across different verticals and continued weakness in its UK-based subsidiary Bluefin. 

On Friday, the shares of the company closed at Rs 479.10, down 0.09%, or Rs 0.45 on BSE.