Shares of mid-sized IT services company MindTree today rose by nearly 6 per cent to touch a one-year high level, after the company’s consolidated net profit rose by 52 per cent for the first quarter ended June 30, 2013.
Following the strong set of results, the stock started the session on a positive note and as the trade progressed it further gained 5.66 per cent to Rs 966.2 — its 52-week high on the BSE.
On the NSE, the scrip surged 5.72 per cent to touch its one-year peak of Rs 966.60.
“MindTree’s Q1 results were ahead of estimates. Positive outlook for FY’14, along with signs of uptick in discretionary spending and relatively attractive valuation would make it a good long-term portfolio candidate in mid-cap IT space,” said Vivek Mahajan, Head of Research, Aditya Birla Money.
MindTree’s consolidated net profit rose by 52 per cent for the quarter ended June 30, 2013 on the back of a healthy growth in consumer packaged goods, retail and insurance verticals.
The Bangalore-headquartered firm posted a net profit of Rs 135.4 crore in April-June quarter this fiscal against Rs 89.2 crore in the same quarter of 2012-13 fiscal.
MindTree, which saw 15 consecutive quarters of revenue growth, said it expects the revenue momentum to continue in the July-September quarter, which will be able to offset the wage hikes and campus hiring in the second quarter.
The firm reported a 15 per cent rise in its consolidated income at Rs 647.7 crore in the first quarter of 2013-14 from Rs 563 crore in the same quarter of 2012—13.
In US dollars, MindTree posted a net profit of $24.6 million in Q1 of 2013-14 fiscal, a 47.3 per cent growth year-on-year. Its revenues rose by 11.6 per cent to $117.7 million during the same period.