Mindtree Q3 profit sees fall by 0.8 percent

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New Delhi, Jan 17 (ANI): IT services provider Mindtree reported its marginal growth in revenue during October-December quarter as furloughs this year may be slightly higher than last year.

Dollar revenue is likely to increase 1.22 percent to USD 182.5 million compared to USD 180.3 million in preceding quarter and 1.5 percent in constant currency.

Revenue growth may be driven by digital business that accounts for close to 37 percent of revenue.

Analysts see moderate impact of Chennai floods on earnings. Mindtree has been confident of beating NASSCOM’s full year revenue growth guidance of 12-14 percent (in constant currency) for the industry.

It registered a 16.4 percent growth in dollar revenue in Q2 and 4.8 percent in Q1. The company will also consider bonus issue along with earnings on January 18.

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Even the company had already toned down expectations with respect to margins at the start of the year, saying margin in FY16 would be suppressed due to continued investments in digital and facilities.

Earnings before interest and tax (EBIT) may increase 1.8 percent quarter-on-quarter to Rs. 188 crore and margin may contract 12 basis points to 15.67 percent in quarter ended December 2015. (ANI)

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