MindTree Q1 Results: Net Profit doubles

Stocks

oi-Monika Nihalani

By Monika Nihalani

Published: Thursday, July 21, 2011, 13:35 [IST]

MindTree, a mid-tier Indian IT firm performed pretty well in its first quarter by posting more than double profit over the period April-June.

The company showed a high jump in its net profit, its profits surged from Rs 15.9 crore corresponding quarter last year to Rs 34.5 crore during the quarter ended June 30.

The company which is present globally and has 283 active customers, 18.46% rise in revenues. It's revenues increased from Rs 348.7 crore corresponding quarter last year to Rs 413.1 crore this quarter.

“Q1 has been a robust quarter in terms of revenue growth and margin performance. Our IT Services business continues its stellar performance and posted a solid of 10.7% growth Quarter-on-Quarter (QoQ) and 41.8% Year-on-Year (YoY)," Krishnakumar Natarajan, CEO & MD of MindTree said in press release.

Foreign-exchange gains and lower-tax costs aided rise in net profits. In the first-quarter, the company posted foreign-exchange gains of 9.1 crore as compared with the loss of 1.8 crore a year earlier. Company's tax expenses were Rs 14 crore a year earlier which came down to Rs 5.7 crore this quarter.

Company lost a major chunk of its share value last quarter after the company's chairman and co-founder, Ashok Soota, left the company with the aim of starting his own venture. He sold 5.5% stake in the firm through a block deal.

But stock may regain in near future reflecting growth numbers posted by the company.

OneIndia Money