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Mindtree: A Poor Performance - Views on News from Equitymaster
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Mindtree: A Poor Performance
Nov 29, 2016

Mindtree has announced results for the second quarter of FY17. The company has reported a 2.4% QoQ fall in sales and a 37.4% QoQ fall in net profits.

Performance summary
  • Consolidated net sales fell by 2.4% QoQ during 2QFY17. The topline was down 3% QoQ in US dollar terms.
  • The operating profit decreased by 16.9% QoQ and operating margins fell to 12.5%. This was largely due the poor topline performance.
  • The other income decreased by 14.1% QoQ while finance costs fell by 7.8% QoQ.
  • Largely due to the poor topline performance, the net profit decreased by 37.4% QoQ.

    Consolidated Financials
    (Rs m) 1QFY17 2QFY17 Change 1HFY16 1HFY17 Change
    Sales 13,276 12,954 -2.4% 21,432 26,230 22.4%
    Expenditure 11,325 11,333 0.1% 17,565 22,658 29.0%
    Operating profit (EBITDA) 1,951 1,621 -16.9% 3,867 3,572 -7.6%
    Operating profit margin (%) 14.7% 12.5% 18.0% 13.6%
    Other income (Including forex gain/loss) 198 170 -14.1% 562 368 -34.5%
    Depreciation 468 463 -1.1% 748 931 24.5%
    Finance costs 51 47 -7.8% 54 98 81.5%
    Profit before tax 1,630 1,281 -21.4% 3,627 2,911 -19.7%
    Tax 395 333 -15.7% 836 728 -12.9%
    Profit after tax/(loss) 1,235 948 -23.2% 2,791 2,183 -21.8%
    Minority interest & others 105 241 129.5% 8 346
    Net profit 1,130 707 -37.4% 2,783 1,837 -34.0%
    Net profit margin (%) 9.3% 7.3% 13.0% 8.3%
    No. of shares (m) 168.0
    Diluted earnings per share (Rs)* 25.8
    P/E ratio (x)* 18.5

    *On a trailing 12-month basis

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