Mindtree tumbles after weak Q3 results

Mindtree tumbled 5.54% to Rs 1413.05 at 9:16 IST on BSE after consolidated net profit declined 31.2% to Rs 88.50 crore on 2.7% growth in revenue to Rs 790.60 crore in Q3 December 2013 over Q2 September 2013.

The Q3 result was announced after market hours on Thursday, 16 January 2014.

Meanwhile, the S&P BSE Sensex was down 23.57 points or 0.11% at 21,241.61.

On BSE, so far 3,104 shares were traded in the counter as against average daily volume of 13,000 shares in the past two weeks.

The stock hit a high of Rs 1,478 and a low of Rs 1,413.05 so far during the day.

In dollar terms, Mindtree's consolidated net profit declined 31.5% to $14.20 million on 2.5% growth in revenue to $127.10 million in Q3 December 2013 over Q2 September 2013.

Mindtree reported a forex loss of Rs 27.20 crore in Q3 December 2013 compared with a net forex gain of Rs 20 crore in Q2 September 2013.

The company added 397 employees on a gross basis in Q3 December 2013.

Commenting on the results, Krishnakumar Natarajan, CEO & Managing Director, Mindtree said, "We are seeing good business momentum and traction with our clients. Our strong deal pipeline, improved client metrics, proven leadership, global right-sourcing delivery model, and ability to attract and retain talent demonstrate our confidence for a promising future. We will continue to invest in technology-led solutions as our clients are favourably responding to it by making Mindtree a significant part of their strategic initiatives".

Mindtree is a global information technology solutions company.

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