MindTree share price jumps 10% on two-fold rise in profit

Shares of MindTree opened on a bullish note and jumped as much as 18 per cent on the bourses on Thursday, before closing 10.5 per cent higher, after the IT firm reported a two-fold increase in net profit for the first quarter of this financial year.

Shares of MindTree, which have lost over 36 per cent since the start of this year, opened on a strong note at Rs 365 on the Bombay Stock Exchange, then surged to a high of Rs 425.50, up 18.45 per cent from their previous closing price. The stock, however, pared its gains and closed 10.52 per cent higher at Rs 397.

On the National Stock Exchange, the stock witnessed similar movement, opening at Rs 373.60 before closing for the day 9.04 per cent higher from the previous close at Rs 392.10.

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For the quarter ended June 30, the company's net profit stood at Rs 34.5 crore, up from Rs 5.9 crore in the first quarter last year. Revenue during the reporting quarter increased 18.46 per cent to Rs 413.1 crore from Rs 348.7 crore in the same period last year.

"Momentum in both our businesses is expected to continue and we are confident of delivering higher than industry average growth in FY'12," MindTree CEO and MD Krishnakumar Natarajan said on Wednesday while announcing the results.

Last quarter, the company's stocks were hammered following the exit of its chairman and co-founder, Ashok Soota.

Soota left MindTree to start his own business venture. He has, since then, sold half of his stake (about 5.5 per cent) through a block deal.

- With inputs from PTI