Shares of MindTree opened on a bullish note and jumped by as much as 18 % on the bourses today after the IT firm reported a two-fold increase in net profit for the first quarter of this fiscal.
Shares of MindTree, which have lost over 36 % 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 % from their previous closing price.
On the National Stock Exchange, the stock witnessed similar movement, opening at Rs 373.60 before jumping to a high of Rs 425.80, up 18.40 % from its last close.
For the quarter ended June 30, 2011, the company's net profit stood at Rs 34.5 crore, up from Rs 5.9 crore in the first quarter last fiscal. Revenue during the reporting quarter increased 18.46 % to Rs 413.1 crore from Rs 348.7 crore in the same period last year.
On the volume front, as many as 6.57 lakh shares of the company exchanged hands on the BSE and over 14.97 lakh shares got traded on the NSE by 1148 hours.
"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 %) through a block deal.