The company added 1 client in $5 million bucket, taking total active clients to 346 as of June 2019.
Midcap IT company Mindtree disappointed the Street on July 17 by reporting more than 50 percent sequential fall in profit as well as operating income for the quarter ended June 2019, partly impacted by the transition to Ind AS 116.
Profit during the quarter plunged 53.3 percent sequentially to Rs 92.7 crore, dented by a steep fall in operating income.
Revenue in rupee terms degrew 0.3 percent quarter-on-quarter to Rs 1,834.2 crore but dollar revenue increased 0.8 percent sequentially to $264.2 million with a constant currency growth of 1.1 percent QoQ in the April-June period.
"While the external factors pose some challenges, nonetheless our focussed strategy and strong client relationships make us confident of delivering above Industry growth rates in FY20 as well," Rostow Ravanan, CEO & Managing Director said.
At the operating level, earnings before interest and tax fell sharply by 50.7 percent sequentially to Rs 117.2 crore and margin contracted 650bps QoQ to 6.4 percent on the transition to Ind AS 116 'Leases'.
Consequently, the company recognised interest expenses on lease liabilities amounting to Rs 13 crore and depreciation on right-of-use assets amounting to Rs 23.3 crore for the quarter. Wage cost during the quarter increased by 9 percent.
The company added 1 client in $5 million buckets, taking total active clients to 346 as of June 2019.Meanwhile, Larsen & Toubro became the promoter or parent company for Mindtree with 60.59 percent shareholding.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.