Mindtree Q3 net misses forecast, down 31% to Rs 88.5 cr

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Moneycontrol Bureau

Bangalore-based IT services exporter Mindtree missed street expectations on the profit front while the rest of earnings (revenues and operational performance) were in-line.

Net profit fell 31 percent sequentially to Rs 88.5 crore in the quarter ended December 2013 as it reported forex loss of Rs 27.2 crore as against forex gain of Rs 20 crore.

The forex loss was higher than analysts' forecast of USD 3 million.

According to CNBC-TV18 poll, analysts on an average had expected net profit of Rs 95.5 crore on revenues of Rs 790 crore for the quarter.

Revenues grew 2.7 percent quarter-on-quarter to Rs 790.6 crore while dollar revenues increased 2.7 percent to USD 127.1 million in the quarter gone by, which was lower compared to peer HCL Technologies (4 percent) and higher compared to Infosys (1.6 percent).

Net income in dollar terms declined 31.5 percent to USD 14.2 million on sequential basis.

"We are seeing good business momentum and traction with clients. Strong deal pipeline, improved client metrics and ability to attract and retain talent demonstrate confidence for a promising future," Krishnakumar Natarajan, CEO and MD said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 3.4 percent to Rs 154.4 crore and margin declined 126 basis points to 19.5 percent during December quarter.

The company has 208 active clients as of December 2013 while trailing 12 months attrition rate declined to 11.6 percent as compared to 15.1 percent a year ago.