 "Rostow Ravanan, CEO & MD, Mindtree")
Shares of IT firm Mindtree slumped 7%today after the company posted a 3.7% drop in consolidated net profit in the June quarter.
The stock tanked 6.81%to Rs 572 -- its 52-week low level -- on BSE.
On NSE, it tumbled 7% to hit its one year low of Rs 571.
Yesterday, Mindtree posted a 3.7% drop in consolidated net profit to Rs 123.5 crore in the June quarter that witnessed "strong winds" in the form of slower project ramp-ups and loss from its Bluefin business.
Citing challenges in the global environment arising out of the UK's exit from the European Union, Mindtree expects strong revenue growth from the third quarter beating industry average.
The Bengaluru-based firm's net profit stood at Rs 128.3 crore in the April-June 2015 quarter. Its revenue grew 35.8% to Rs 1,327.6 crore in the quarter under review from Rs 977.5 crore in the year-ago period.
"Overall, Q1 was a soft quarter compared to our previous quarters. There were delay in project ramp ups. There was strong competition in both traditional and digital businesses which led to a price compression," Mindtree CEO and MD Rostow Ravanan had said in a conference call.
In dollar terms, Mindtree's net profit fell 8.7% to $18.5 million in the April-June 2016 quarter, while revenue was up 29%to $199 million from the year-ago period. About 40%of its revenues came from digital services.
