Mindtree Q4 beats estimates; profit up 3.4%, $ revenue rises 6%

According to analysts polled by CNBC-TV18, profit was estimated at Rs 153 crore on revenue of Rs 1,286 crore for the quarter. Dollar revenue growth was expected at 3.85 percent.

Mindtree has 348 active clients as of March 2016. Its clients in USD 25 million category increased to 6, USD 10 million to 15, USD 5 million to 31 and USD 1 million to 101.

"We added 1,020 employees during the quarter on gross basis and trailing 12 months attrition rate stood at 15.7 percent," it said.

Earnings before interest and tax margin declined to 14.43 percent in March quarter from 14.8 percent in preceding quarter.

MindTree has performed better on topline than bottomline, Prakash Diwan of prakashdiwan.com said. However, he said that margins could have been better than 14.4 percent reported in Q4.

Diwan expects the stock to consolidate at higher level. "It is comforting that the company is focusing on organic business after focusing on acquisitions for last four quarters," he said.

In FY16, profit increased 12.5 percent to Rs 603.3 crore and revenue jumped 31.7 percent to Rs 4,689.6 crore compared to previous year. Revenue in dollar terms climbed 22.5 percent to USD 715.2 million and 26 percent in constant currency.

"We are confident that strategic roadmap with digital and managed services as underlying themes backed by expert teams will help us deliver superior results going forward," said Rostow Ravanan, who has been appointed as CEO & MD of the company.

The IT company has appointed Krishnakumar Natarajan as executive chairman.