X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Mindtree: The Recovery Moves Slowly - Views on News from Equitymaster
The India Letter
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Mindtree: The Recovery Moves Slowly
Jul 20, 2017

Mindtree has announced results for the first quarter of FY17. The sales were down 2.2% QoQ and the net profit was up 81.2% QoQ.

Performance summary
  • Consolidated net sales were down 2.2% QoQ. The topline was up 2.3% QoQ in US dollar terms and up 1.2% QoQ in constant currency terms.
  • The operating profit decreased by 12.6% QoQ and operating margins fell to 11.1%. This was largely due seasonal visa costs, adverse cross-currency movements and one-off cost overruns in some projects in the recently acquired entities.
  • The depreciation decreased by 1.9% QoQ while finance costs decreased by 14.9% QoQ.
  • The jump net profit was largely due to a forex gain of Rs 88 million in the quarter compared to a forex loss of Rs 228 million in 4QFY17, as well as a write back of Rs 374 million in excess provisioning.
  • The company has announced a buyback of Rs 2,700 million at Rs 615 per share. Please find our view on the buyback below.

    Consolidated Financials
    (Rs m) 4QFY17 1QFY18 Change
    Sales 13,181 12,895 -2.2%
    Expenditure 11,540 11,460 -0.7%
    Operating profit (EBITDA) 1,641 1,435 -12.6%
    Operating profit margin (%) 12.4% 11.1%  
    Other income (Including forex gain/loss) 133 654  
    Depreciation 468 459 -1.9%
    Finance costs 47 40 -14.9%
    Profit before tax 1,259 1,590 26.3%
    Tax 287 373 30.0%
    Profit after tax/(loss) 972 1,217 25.2%
    Other Comprehensive Income -234 120  
    Net profit 738 1,337 81.2%
    Net profit margin (%) 7.4% 9.4%  
    No. of shares (m)   168.1  
    Diluted earnings per share (Rs)*   22.4  
    P/E ratio (x)*   21.6  

    *On a trailing 12-month basis


    Segmental Performance
    (Rs m) 4QFY17 1QFY18 Change
    On basis of industry vertical      
    Technology, Media and Services 4,943 4,887 -1.1%
    BFSI 3,256 3,237 -0.6%
    Retail, CPG & Manufacturing 3,032 2,914 -3.9%
    Travel & Hospitality 1,964 1,844 -6.1%
    On basis of geography      
    US 9,200 8,975 -2.5%
    Europe 2,742 2,721 -0.8%
    India 369 387 4.8%
    Rest of the world 870 812 -6.6%
    On the basis of service offerings      
    Development 2,821 2,914 3.3%
    Engineering 1,252 1,238 -1.1%
    Maintenance 2,412 2,450 1.6%
    Consulting 527 438 -16.8%
    Package Implementation 1,661 1,483 -10.7%
    IP Led Revenue 171 142 -17.2%
    Independent Testing 1,648 1,522 -7.6%
    Infrastructure Management & Tech Support 2,689 2,708 0.7%

    *On a trailing 12-month basis

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
  2. Equitymaster has financial interest in Mindtree Limited.
  3. Equitymaster's investment in the subject company is as per the guidelines prescribed by the Board of Directors of the Company. The investment is however made solely for building track record of its services.
  4. Equitymaster's Associates and Research Analyst or his/her relative doesn't have any financial interest in the subject company.
  5. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  6. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MINDTREE LTD SHARE PRICE


Dec 15, 2017 01:24 PM

TRACK MINDTREE LTD

  • Track your investment in MINDTREE LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MINDTREE LTD - PERSISTENT SYSTEMS COMPARISON

COMPARE MINDTREE LTD WITH

MARKET STATS