MindTree slips after weak Q2 results

MindTree fell 2.16% to Rs 1,348.60 at 10:35 IST on BSE after consolidated net profit fell 4.9% to Rs 128.70 crore on 18.8% increase in revenue to Rs 769.60 crore in Q2 September 2013 over Q1 June 2013.

The result was announced on Wednesday, 16 October 2013.

Meanwhile, the BSE Sensex was up 40.04 points, or 0.19%, to 20,587.66.

On BSE, 14,000 shares were traded in the counter compared with average volume of 28,905 shares in the past one quarter.

The stock hit a high of Rs 1,387.20 and a low of Rs 1,329 so far during the day. The stock hit a record high of Rs 1,416.40 on 15 October 2013. The stock hit a 52-week low of Rs 635 on 17 October 2012.

The stock had outperformed the market over the past one month till 15 October 2013, rising 28.57% compared with the Sensex's 4.13% rise. The scrip had also outperformed the market in past one quarter, gaining 50.61% as against Sensex's 2.56% rise.

The mid-cap company has an equity capital of Rs 41.71 crore. Face value per share is Rs 10.

MindTree said net profit declined in Q2 September 2013 due to higher forex gain in Q1 June 2013. The company reported a foreign exchange gain of Rs 20 crore in Q2 September 2013 compared with a gain of Rs 61.80 crore in Q1 June 2013.

Earnings before interest taxes depreciation and amortization (EBITDA) rose 34.2% to Rs 159.80 crore in Q2 September 2013 over Q1 June 2013.

EBITDA margin was reported at 20.8% in Q2 September 2013 compared with 18.4% in Q1 June 2013.

"The relentless execution of our new strategies has delivered two consecutive quarters of strong revenue growth this year. We continue to invest in expertise-led solutions and attracting top quality industry talent. This drives positive business outcomes for our customers while achieving sustainable growth," said Krishnakumar Natarajan, CEO & Managing Director, Mindtree.

The company said it had 220 active customers as of 30 September 2013.

The company had 12,941 employees as of 30 September 2013. It added 1,122 employees during the quarter on a gross basis.

Mindtree is a global information technology solutions company.

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