Mindtree shares zoom over 13 pc after Q4 earnings

Shares of IT firm Mindtree on Monday closed over 13 per cent higher after the company reported a 3.9 per cent rise in consolidated net profit for March 2020 quarter.

The scrip zoomed 12.90 per cent to close at Rs 881.40 on the BSE. During the day, it jumped 14.51 per cent to Rs 894.

On the NSE, it gained 13.41 per cent to settle at Rs 885.

After market hours on Friday, Mindtree reported a 3.9 per cent rise in consolidated net profit to Rs 206.2 crore for March 2020 quarter, and said it anticipates softness in demand ahead as clients defer spending due to COVID-19 pandemic.

The Bengaluru-based company had posted a net profit of Rs 198.4 crore in the same period last year.

Its revenue grew 11.5 per cent to Rs 2,050.5 crore in the quarter under review from Rs 1,839.4 crore in the year-ago period.

"Looking ahead to fiscal 2021, we anticipate softness in demand due to the unprecedented COVID-19 pandemic, Mindtree CEO and MD Debashis Chatterjee said.

However, the company is well equipped to handle the global crisis based on the business continuity plan we have successfully implemented to ensure the health and safety of our employees while fully supporting our clients worldwide, he added.

Mindtree's board of directors has recommended a final dividend of Rs 10 per equity share for the financial year ended March 31, 2020, subject to the approval of shareholders at the 21st annual general meeting.