Mid-tier IT services company Mindtree reported a 3% sequential fall in quarterly dollar revenue hurt by lower revenue from Europe, volatile macroeconomic conditions post Brexit vote and slower ramp-ups in a few large clients across verticals.
Revenue dropped to $193 million, for the second quarter ended September 30, from $199 million in the previous quarter. Net profit fell to $24.1 million from $29.2 million. On a constant currency basis, which discounts currency fluctuations, revenue dropped 1.7%.
"The volatile macroeconomic environment has resulted in slower ramp-ups and cautious spending in a few large clients across our verticals." chief executive Rostow Ravanan said on Friday.
Ravanan added the challenges, which also include project cancellations, will continue for a little more time and hence expects the current quarter to remain subdued as well. The company's UK-based unit Bluefin, a SAP HANA consultancy, continued to show weakness due to slow ramp up of clients.
"Customers are delaying decisions and cancelling projects due to external environment," he said in a conference call with reporters.
Revenue from Europe fell to 21.4% for the quarter from 23.4% for the quarter ended June. Revenue from banking financial service and insurance (BFSI) dropped to 24.7% from 24.9% sequentially. BFSI and the travel & hospitality had the maximum challenge on margins, which dropped to 12.5% from 14.7% due to severe pricing pressure in contract renewals.
Courtesy:- Times of India.
Revenue dropped to $193 million, for the second quarter ended September 30, from $199 million in the previous quarter. Net profit fell to $24.1 million from $29.2 million. On a constant currency basis, which discounts currency fluctuations, revenue dropped 1.7%.
"The volatile macroeconomic environment has resulted in slower ramp-ups and cautious spending in a few large clients across our verticals." chief executive Rostow Ravanan said on Friday.
Ravanan added the challenges, which also include project cancellations, will continue for a little more time and hence expects the current quarter to remain subdued as well. The company's UK-based unit Bluefin, a SAP HANA consultancy, continued to show weakness due to slow ramp up of clients.
"Customers are delaying decisions and cancelling projects due to external environment," he said in a conference call with reporters.
Revenue from Europe fell to 21.4% for the quarter from 23.4% for the quarter ended June. Revenue from banking financial service and insurance (BFSI) dropped to 24.7% from 24.9% sequentially. BFSI and the travel & hospitality had the maximum challenge on margins, which dropped to 12.5% from 14.7% due to severe pricing pressure in contract renewals.
Courtesy:- Times of India.
No comments:
Post a Comment