Mindtree shares fell by more than 4% on Q1 earnings disappointment

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Shares of IT firm Mindtree today fell by more than 4%, after the organization detailed a 1.5% drop in consolidated net profit for the June quarter. After beginning Thursday’s session on a lower note of, the organization further declined 4.29% to Rs. 485 on the Bombay Stock Exchange (BSE). On the National Stock Exchange (NSE), the stock went down 4.27% to Rs. 485. Mindtree on Wednesday announced a 1.5% decrease in consolidated net profit at Rs. 121.7 crore for April-June, impacted by currency volatility, visa costs and one-time impact on business of one of its subsidiaries.

The “temporary volatility” in the subsidiaries’ businesses has promoted Mindtree to slash its income growth outlook to “high single-digit” from the prior projection of double-digit rise in top line.

Total income increased hardly to Rs. 1,354.9 crore in the June quarter, from Rs. 1,347.4 crore in the year-ago period.

In dollar terms, Mindtree’s net profit grew 2% to $18.9 million in the said quarter while income was up marginally to $200.1 million from the year-ago period.

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