MindTree - 3QFY2014 results - Angel Broking

Views of Ms. Ankita Somani (Research Analyst - IT, Angel Broking) on MindTree 3QFY2014 results:

"For 3QFY2014, MindTree's revenue came in inline with the expectations but disappointed on the operating margin as well as on the bottomline front. The dollar revenues came in at US$127mn, up 2.5% qoq, led by volume growth of 2.0% on a sequential basis. In INR terms, revenue came in at Rs. 791cr, up 2.7% qoq. MindTree's EBITDA and EBIT margin declined by 127bp and 134bp qoq to 19.5% and 16.9%, respectively, due to higher employee costs. PAT came in at Rs. 89cr impacted by forex loss of Rs. 27cr as against gain of Rs. 20cr in 2QFY2014. MindTree's management indicated that the deal pipeline of the company remains healthy because of pick up in client spending as well as a result of company's greater concentration on mining its focus clients. We continue to be positive on the stock owing to its diversified revenue portfolio and past performance."

Source : Equity Bulls

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