Mindtree trims early gains; up 1.5% at close

Mumbai: Trimming most of its early gains due to profit-booking, shares of IT firm Mindtree on Friday ended 1.5 percent higher.

After surging 5.11 percent to Rs 1,475 in intra-day trade, shares of the company finally ended at Rs 1,424.75, up 1.53 percent on BSE.

At NSE, shares of the company settled with a gain of 1.42 percent at Rs 1,423.50.

The mid-sized IT firm posted a net profit of Rs 158.2 crore for the July-September quarter this fiscal as compared to Rs 137.4 crore in the year-ago period.

Its revenue increased 31.6 percent to Rs 1,169.3 crore for the second quarter from Rs 888.6 crore in the year-ago period.

"This has been a stellar quarter on all fronts. Our recent strong deal wins and strategic acquisitions will fuel growth in the coming quarters," Mindtree CEO and Managing Director Krishnakumar Natarajan said on a conference call yesterday.

"Q3 is seasonally weak as there are leaves and furloughs. Also, there is an European client scaling down... There are furloughs from enterprise as well... Despite these headwinds, we expect the quarter to be better than Q3 last year. There is a healthy funnel and we will beat Nasscom's growth estimate," he said.

Its larger rivals, Infosys and Tata Consultancy Services (TCS) have already said the sequential revenue growth in the second half of the year could be impacted on account of fewer working days in the December quarter.

In dollar terms, the Bengaluru-based firm reported 6.8 per cent growth in net profit at USD 24.3 million and 22.6 per cent rise in revenue to USD 180.3 million.