Mindtree shares fell as much as 4 per cent in the morning trade on Tuesday after the IT company informed stock exchanges that it sees a marginal quarter-on-quarter revenue growth in Q4 on an organic basis due to delay in the commencement of few projects in the Retail and Consumer Packaged Goods vertical and Banking, Financial Services and Insurance (BFSI) vertical.
At 10.44 am, Mindtree shares were trading 2.09 per cent down at Rs 1,556.50. The scrip opened at Rs 1,559.50 and has touched a high and low of Rs 1,600 and Rs 1,526.40, respectively, in trade so far. Later, the share price of company ended 2.69 per cent down at Rs 1547.00.
In a BSE filing, Mindtree said, “Operating margins for the quarter are expected to decline as compared to Q3. As indicated earlier, for the full year FY16, Mindtree is expected to significantly exceed the NASSCOM growth estimates of 10.3 per cent, even on an organic basis.”
The company remains positive on the future demand environment and is also confident of exceeding the NASSCOM growth estimates of 10-12 per cent for FY17.
On February 25, 2016, Mindtree announced the completion of the acquisition of Magnet 360 LLC. Consequently, the consolidated results for the fourth quarter will take into account the financial of Magnet and Mindtree’s Q-o-Q revenue growth will be higher than that of Q3. “Operating margins for the quarter are expected to declined as compared to Q3, due to lower margin profile of the acquired entity,” the company said in a BSE filing.