Mindtree Shares Jump Over 9 Per Cent; at 52-wk High After Q1 Earnings

Shares of Mindtree on Wednesday zoomed over 9 per cent after the IT firm posted a 61.2 per cent jump in its consolidated net profit for the June quarter and exuded confidence in logging a double-digit revenue growth in FY'22. The stock jumped 9.22 per cent to Rs 2,725 -- its 52 week high -- at the BSE.

On the NSE, it gained 9.18 per cent to its one-year high of Rs 2,725. Mindtree on Tuesday posted a 61.2 per cent jump in its consolidated net profit at Rs 343.4 crore for the June quarter.

The Bengaluru-based company, which has registered a net profit of Rs 213 crore in the June 2020 quarter, said it is witnessing broad-based growth across industries and services and that its deal pipeline continues to remain strong. Mindtree's revenue grew by 20.1 per cent to Rs 2,291.7 crore in the quarter under review, from Rs 1,908.8 crore in the year-ago period. "Our strong start to FY22 underscores the resilience of our business model, and the continued commitment of Mindtree minds.

For the quarter, our revenues were up 7.7 per cent sequentially and our order book at over half a billion dollars (USD 504 million) is the highest-ever in our history. "This is our fourth consecutive quarter of profitable growth momentum despite unprecedented time," Mindtree CEO and Managing Director Debashis Chatterjee told reporters in a virtual briefing.

He added that the company has seen broad-based growth across service lines, industry segments and geographies, indicating that the disciplined execution of its strategy and investment in strengthening capabilities and partnerships are producing desired results.

In dollar terms, Mindtree's net profit rose by 64.7 per cent to USD 46.5 million, while revenue grew by 22.6 per cent to USD 310.5 million in the June quarter over the year-ago period. At the end of the June quarter, the company's active client base stood at 260. Chatterjee said the company is very confident of clocking an industry-leading double-digit growth for the full fiscal.

(PTI)