Mindtree likely to report drop in Q2 profit on year-on-year basis

IT services company MindtreeNSE -2.39 % is expected to report a year-on-year drop in profit, but the bottom line may climb sequentially thanks to better margins.

Kotak Securities expects it to post 2.2 per cent revenue growth for the quarter in constant-currency terms. “Revenue growth will be broadbased across verticals at Rs 1,896 crore, up 8 per cent YoY and 3.4 per cent QoQ,” the brokerage said. It expects revenues from the largest client to grow as well.

EBIT margin for June quarter, 2019, was abnormally low and impacted by one-time bonus paid to employees that affected EBIT margin by 260 bps. In addition, visa costs also had an impact on margins by 30 bps.