MindTree hits 52-week low after weak Q1 earnings

MindTree lost 5.89% to Rs 577.65 at 11:20 IST on BSE after consolidated net profit declined 7.2% to Rs 123.50 crore on 0.6% growth in revenue to Rs 1327.60 crore in Q1 June 2016 over Q4 March 2016.

The result was announced after market hours yesterday, 18 July 2016.

Meanwhile, the S&P BSE Sensex was up 6.20 points or 0.02% at 27,752.86.

On BSE, so far 1.88 lakh shares were traded in the counter as against average daily volume of 23,187 shares in the past one quarter. The stock hit a low of Rs 572 so far during the day, which is a 52-week low for the counter. The stock hit a high of Rs 599.90 so far during the day. The stock had hit a record high of Rs 803.50 on 4 March 2016. The stock had underperformed the market over the past one month till 18 July 2016, sliding 2.65% compared with Sensex's 4.21% rise. The scrip had also underperformed the market in past one quarter, declining 16.07% as against Sensex's 7.48% rise.

The large-cap company has equity capital of Rs 167.83 crore. Face value per share is Rs 10.

In dollar terms, MindTree's consolidated net profit declined 5.8% to $18.50 million on 2% growth in revenue to $199 million in Q1 June 2016 over Q4 March 2016.

The company's CEO & Managing Director Rostow Ravanan said that while the global environment poses some short term challenges, the management remains confident that the company's investments are on the right track to accelerate growth for its clients and the company.

MindTree's board of directors at its meeting held yesterday, 18 July 2016, approved amalgamation of its wholly owned subsidiary Magnet 360, LLC subject to necessary approvals.

MindTree is a global information technology consulting firm specializing in corporate IT services and solutions.

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