Mindtree shares close over 1% higher as net profit jumps

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Shares of IT firm Mindtree closed over 1 per cent higher on Tuesday after the company reported a 65.7 per cent rise in its consolidated net profit for the December 2020 quarter. The stock closed at Rs 1,680.30, a gain of 1.19 per cent on the BSE. During the day, it gained 5.96 per cent to Rs 1,759.70.

On the NSE, it gained 1.11 per cent to close at Rs 1,682. Mindtree on Monday reported a 65.7 per cent rise in its consolidated net profit to Rs 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 Rs 197 crore in the year-ago period. Its revenue grew 3 per cent to Rs 2,023.7 crore in the quarter under review, from Rs 1,965.3 crore in the year-ago period.

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"We have been working on improving our operational parameters since last year. On a quarter-on-quarter basis, there has been 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 $274.1 million in the December 2020 quarter over the year-ago period.