MindTree Q3: Analysts see margin to fall 220 bps QoQ
Software services provider MindTree is set to announce its results for the third quarter of current financial year 2012-13 on Friday. Analysts on an average expect profit after tax of the company to grow by 18.4 percent quarter-on-quarter to Rs 85 crore in the quarter.
January 18, 2013 / 19:21 IST
Software services provider MindTree is set to announce its results for the third quarter of current financial year 2012-13 on Friday. Analysts on an average expect profit after tax of the company to grow by 18.4 percent quarter-on-quarter to Rs 85 crore in the quarter.
Revenue (in rupee terms) is likely to fall marginally to Rs 593 crore from Rs 596.3 crore during the same period. However, revenue in dollar terms is expected to increase 2.8 percent to USD 110 million from USD 107.3 million QoQ, which is in line with management's commentary saying second half of FY13 would be better.Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen going down by 10.5 percent QoQ to Rs 118.5 crore.EBITDA margin is seen declining 220 basis points to 20 percent in December quarter as against 22.1 percent in previous quarter, dragged by combination of rupee appreciation (3.5 percent QoQ) and wage increases (18 percent people effective from September 1 and 2 percent people effective from October 1).Company realised a loss of USD 7.6 million in October-December quarter due to restatement of debtors. MindTree has seen delays in closures of certain large deals, so the commentary on the results of the company’s efforts on this front would be critical, say analysts.The management has been scaling down its expectations due to delays in closures of some deals. It has lowered its dollar revenue growth to less than 11 percent YoY for FY13 while earlier its guidance was similar to NASSCOM range of 11-14 percent.Analysts feel the miss is largely expected due to some delays in signing of a large contract.Shares rose 1.01 percent to close at Rs 745 on Bombay Stock Exchange on Thursday. The stock gained 15 percent in last three months and it has been strong midcap performer in 2012 with a gain of 57 percent.Also ReadMarket sentiment likely to remain strong in 2013: HCL TechTCS sees stable pricing in 2013, to hire 60,000 moreEurope looks good; won't clip pricing to drive rev: Infosys Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
