Mindtree stock tanks 6.5% after September quarter result

Mindtree reported smart growth in profit numbers on a yoy basis as well as on a sequential basis.

Oct 16, 2020 02:10 IST India Infoline News Service

Shares of Mindtree fell for the third consecutive session after the company posted net profits of Rs254cr and operating profits of Rs333cr in the Sep-20 quarter. While the total sales were almost flat at Rs.1926 crore on a yoy basis, there was almost a doubling of operating profits and net profits over the last September quarter.

The stock is currently trading at Rs1,333.90, down by Rs93.65 or 6.56% from its previous closing of Rs1,427.55 on the BSE.

Mindtree reported smart growth in profit numbers on a yoy basis as well as on a sequential basis. While better client penetration was one of the key reasons for the higher profit margins, Mindtree also managed costs much better and operating under the eco-system of the L&T balance sheet appears to have paid off for Mindtree. OPMs at 17.31% may be lower than other IT peers in the large-cap space, but the growth has been really admirable.

Mindtree added 9 new clients in the quarter taking its total clients to 283 as of the end of the Sep-20 quarter. It added one more client in the $10 million-plus segment and that segment is now 24 in number and nearly 10% of its total client base.

North America still remained the largest market although the market shares of North America fell from 80% to 77%. Even the share of communication and media, which accounted for 51% of revenues was lower at 49.81%, the IT company said.

The scrip opened at Rs1,436.70 and has touched a high and low of Rs1,445.85 and Rs1,264.25 respectively.

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