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Mindtree: Ends FY17 on Expected Lines - Views on News from Equitymaster
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Mindtree: Ends FY17 on Expected Lines
May 17, 2017

Mindtree has announced results for the fourth quarter and full year FY17. The company sales were up 1.8% QoQ and the net profit was down 25.5% QoQ in 4QFY17.

Performance summary
  • Consolidated net sales were up 1.8% QoQ in 4QFY17. The topline was up 1.8% QoQ in US dollar terms and up 2% QoQ in constant currency terms.
  • The operating profit increased by 7.4% QoQ and operating margins improved to 14.2%. This was largely due a 2.5% QoQ reduction in SG&A costs.
  • The depreciation increased by 2% QoQ while finance costs increased by 2.2% QoQ.
  • The net profit decreased by 25% QoQ largely due to a forex loss of Rs 228 million. The net margin declined to 7.4% in 4QFY17.
  • The company declared a final dividend of Rs 3 per share in addition to an interim dividend of Rs 2 per share announced on March 27, 2017.

    Consolidated Financials
    (Rs m) 3QFY17 4QFY17 Change FY16 FY17 Change
    Sales 12,953 13,181 1.8% 46,730 52,364 12.1%
    Expenditure 11,213 11,312 0.9% 38,520 45,183 17.3%
    Operating profit (EBITDA) 1,740 1,869 7.4% 8,210 7,181 -12.5%
    Operating profit margin (%) 13.4% 14.2%   17.6% 13.7%  
    Other income (Including forex gain/loss) 144 -95   839 417 -50.3%
    Depreciation 459 468 2.0% 1,658 1,858 12.1%
    Finance costs 46 47 2.2% 160 191 19.4%
    Profit before tax 1,379 1,259 -8.7% 7,231 5,549 -23.3%
    Tax 348 287 -17.5% 1,706 1,363 -20.1%
    Profit after tax/(loss) 1,031 972 -5.7% 5,525 4,186 -24.2%
    Other Comprehensive Income -41 -234   -242 -621  
    Net profit 990 738 -25.5% 5,283 3,565 -32.5%
    Net profit margin (%) 8.0% 7.4%   11.8% 8.0%  
    No. of shares (m)         168.0  
    Diluted earnings per share (Rs)*         21.2  
    P/E ratio (x)*         23.9  

    *On a trailing 12-month basis


    Segmental Performance
    (Rs m) 3QFY17 4QFY17 Change
    On basis of industry vertical      
    Technology, Media and Services 4,757 4,943 3.9%
    BFSI 3,122 3,256 4.3%
    Retail, CPG & Manufacturing 3,115 3,032 -2.7%
    Travel & Hospitality 1,959 1,951 -0.4%
    On basis of geography      
    US 8,897 9,200 3.4%
    Europe 2,688 2,736 1.8%
    India 403 369 -8.3%
    Rest of the world 965 870 -9.8%
    On the basis of service offerings      
    Development 2,895 2,821 -2.6%
    Engineering 1,235 1,256 1.8%
    Maintenance 2,275 2,412 6.0%
    Consulting 508 527 3.7%
    Package Implementation 1,610 1,661 3.1%
    IP Led Revenue 176 171 -2.4%
    Independent Testing 1,627 1,648 1.2%
    Infrastructure Management & Tech Support 2,627 2,689 2.3%
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