Shares of IT firm Mindtree were trading 4.4% higher on Wednesday as the company posted healthy figures for the December quarter earnings. Mindtree's consolidated net profit jumped 3.1% to Rs 197 crore for the December 2019 quarter, compared to Rs 191.2 crore reported in the same period last year.
Larsen and Toubro (L&T) had acquired control of Mindtree with 60.06% stake in July last year.
The Bengaluru-based company's revenue grew 10% to Rs 1,965.3 crore in the quarter under review as against Rs 1,787.2 crore recorded in the year-ago period.
Share price of Mindtree touched an intraday high of Rs 901.9, rising 4.42%, with 1.28 lakh and 35.24 lakh shares trading on BSE and NSE.
With rising investor participation today, the volume traded was above the 5, 10 and 30-day average volume mark. Market depth data on BSE suggested 88% buyers bidding for the stock compared to 12% sellers offering the stock.
Mindtree shares have gained 8.45% in the last 4 sessions. The stock has risen over 5% in one week, 17% in a month and 12% year-to-date. Mindtree shares traded higher than its 5, 20, 50, 100 and 200-day moving averages.
On Tuesday, shares of Mindtree closed 2.8% higher at Rs 839.75 on BSE.
"As we continue to grow revenue, our sharp focus on driving profitable growth has resulted in the expansion of operating margin by 2.6% and a rise in net profit by 44.7% as compared to the previous quarter," Mindtree CEO and Managing Director Debashis Chatterjee said.
"We continue to execute our growth strategy, proactively incubate deals by mining strategic clients and nurture a learning-led culture. The recently concluded Annual Customer Experience Survey results depict industry-leading scores, indicating our exceptional work in delivering quality services to our clients," he further added.
Mindtree's Digital business grew by 13.5% year-on-year. The company's revenue from Hi-Tech and Media grew 15.2%, while the BFSI segment grew 7.7% on a yearly basis.
On a quarter-on-quarter basis, the company's profit registered a growth of 44.7%, while its revenue rose 1.5%. Company's EBITDA margin was improved by 260bps on a quarterly basis.
As of December 31, 2019, the company has 320 active clients and 21,561 employees, with a 17.2% trailing 12 months attrition rate.
By Rupa Burman Roy