MindTree, the mid-tier IT services firm, has reported a 8.6% decline in net profit to Rs 129 crore on a sequential basis for the fourth quarter...
MindTree, the mid-tier IT services firm, has reported a 8.6% decline in net profit to Rs 129 crore on a sequential basis for the fourth quarter of FY15 impacted largely by the foreign currency movements. The revenue for Q4 stood at R918 crore, recording a flattish growth owing to certain softness in the overall demand environment. In US dollar terms, the revenue growth remained flat while the net profit declined by 9.2%.
However, Mindtree remained upbeat about FY16 expressing confidence of beating the Nasscom’s industry growth guidance of 12-14%. Krishnakumar Natarajan, CEO & MD, MindTree, said, “We expect to beat the Nasscom guidance as the first quarter of FY16 has got off to a good start with revenue momentum coming back.”
For the full year of FY15, MindTree reported a revenue of R3,562 crore with a growth of 17.5% and a net profit of R536 crore, registering a rise of 19%. In US dollar terms, the revenue grew by 16.4% while the net profit rose by 17.9%.
MindTree has declared a final dividend of R10 per share. The operating profit margin declined by 1% at the end of Q4FY15 to touch 19.5%, which was largely due to pricing pressure and forex movements. MindTree does not expect any significant upward movement in margins due to pricing pressure and capex during the year.