Mindtree, the mid-tier IT services firm, reported a 1.2% chronological income growth in stable currency basis. This was due to a rise in pay from Europe that was more than expected in contribution as compared to the U.S. On basis of the report, the revenue of the company grew from $195.6 Million in the previous quarter to $200 Million by 2.3%, for the quarter one that concluded on June 30, 2017. Overall profit expanded to $18.9 Million by 30.8% for the same period. Margins, on the other hand, dropped from 14.2% to 11.1%. Income jumped by merely 0.6% as compared to that of the last year quarter.
“We carry on to maintain stable momentum with a sturdy pipeline as well as multi-million dollar and multi-year wins,” claimed Rostow Ravanan, CEO of Mindtree to the media in an interview. “Our management in digital is permitting the company to contend successfully in huge opportunities that are at the heart of efforts of our clients to expand their businesses,” he further added while talking to the media.
Revenue addition from Europe jumped from 20.8% to 21.1% while the U.S. dropped from 69.8% to 69.6%. The addition of the financial services, banking, and insurance vertical, the largest contributor to many topline of the Indian IT firms, jumped from 24.7% to 25.1%. Media, technology, and services were high from 37.5% to 37.9%. The company signed digital deal valued $108 Million and income from that sector jumped by 9.3% in sequence. Wear and tear dropped down from 15.1% to 14% but just like most of the IT firms, the hiring rate was sluggish. Mindtree hired merely 91 individuals in the quarter and its strength of employee remained at 16,561. This information was given by a spokesperson at the company to the media.
The Mindtree panel has accepted a share buyback of Rs 270 Crore at Rs 625 for each equity share. The firm also said that National Company Law Tribunal accepted compound scheme of merger of Relational Solutions and Discoverture Solutions with the firm with a fixed date of April 1, 2015. Both of them are completely owned subsidiaries of the company.