Mindtree Up 6% After Reporting 66% Jump In Q3 Net Profit

On Tuesday, shares of Mindtree Ltd rose as much as 5.7% to Rs 1,760 after the company reported a 65.7% jump in net profit for the December-ended quarter at Rs 326.5 crore on strong demand for cloud and digital services.

During the same quarter of the previous year, the Bengaluru-based IT services company reported Rs 197 crore profit.

The stock is very close to its 52-week high of Rs 1,780.

Mindtree's consolidated revenue grew 3% to Rs 2,023.7 crore in the third quarter from Rs 1,965.3 crore and Rs 1,926 crore a year earlier and a quarter earlier, respectively.

In dollar terms, net profit was up 59.3% at $44.2 million and revenues were down marginally by 0.4% at $274.1 million.

The company said it witnessed strong business momentum across verticals with demand for cloud, data, digital transformation and analytics on the rise.

It added eight new clients during the quarter and had 276 active clients at the end of the quarter.

Mindtree's key Microsoft business posted a 3.6% revenue increase during the quarter. The company signed a five-year deal with a global wind turbine manufacturer and partnered a global airline to enhance consumer experience on mobile digital platforms during the quarter.

"Our third quarter has by far been the best performing in recent years backed by broad-based revenue growth of 5% across our verticals and service lines, robust margin expansion of 350 bps, and a healthy order book of $312 million," said the company's CEO and MD, Debashis Chatterjee.