Management at Bangalore-based mid-tier offshore services firm Mindtree should take considerable pride from the fact that their business grew faster than the major Indian pure-plays (IPPs) that have so far reported their results; Mindtree’s headline revenues for FY (to 31st March 2017) reached $780m, a growth rate of 9.4%, outstripping that of TCS (6.2%) and Infosys (7.4%).
Nonetheless, like its larger peers, growth is declining - but so are profits; Mindtree’s FY17 operating margin fell to 10.2%, almost 5 points below that of the prior year, and about half the profitability of just two years ago.
It’s admirable that Mindtree is winning share in the increasingly pressured offshore services market. We will have to trust that CEO Rostow Ravanan’s call to trade margin for growth will indeed set Mindtree “well positioned for the year ahead and beyond”!
Posted by Anthony Miller at '08:56'
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