Stocks

Mindtree shares climb 6 per cent as net profit jumps

PTI New Delhi | Updated on January 19, 2021

Shares of IT firm Mindtree jumped 6 per cent on Tuesday after the company reported a 65.7 per cent rise in its consolidated net profit for the December 2020 quarter.

The stock gained 5.96 per cent to ₹ 1,759.70 on BSE.

On NSE, it jumped 5.79 per cent to ₹ 1,760.

Mindtree on Monday reported a 65.7 per cent rise in its consolidated net profit to ₹ 326.5 crore for the December 2020 quarter, and said its deal pipeline continues to be healthy and strong.

The Bengaluru-based company had posted a net profit of ₹ 197 crore in the year-ago period. Its revenue grew 3 per cent to ₹2,023.7 crore in the quarter from ₹ 1,965.3 crore in the year-ago period.

"We have been working on improving our operational parameters since last year. On a quarter-on-quarter basis, there has been a progress made that has helped us in terms of improving our margins," Mindtree Chief Financial Officer Vinit Teredesai said during an earnings briefing.

Teredesai added that this is a continuous journey that the firm will continue to pursue and it aligns with the company's strategy of delivering profitable growth.

On a sequential basis, net profit grew 28.7 per cent and revenue was up 5.1 per cent.

In dollar terms, Mindtree saw its net profit rising 59.3 per cent to $ 44.2 million, while revenue declined marginally to USD 274.1 million in the December 2020 quarter over the year-ago period.

Published on January 19, 2021

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