MindTree posts 157% rise in Q1 net profit

Bangalore-based midsize software company MindTree’s net profit surged 157%, more than double, at Rs 89 crore for the first quarter of 2011-12 against Rs 34.6 crore during the year-ago period. The company’s revenue grew 36% for the quarter at R563 crore.

Bangalore-based midsize software company MindTree’s net profit surged 157%, more than double, at Rs 89 crore for the first quarter of 2011-12 against Rs 34.6 crore during the year-ago period.

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The company’s revenue grew 36% for the quarter at Rs 563 crore.

Rupee depreciation, better margins and new contracts boosted the company’s profit, it said.

However, the company which had said in April it would outperform the Nasscom growth estimate for the fiscal year slightly brought down its forecast following the first quarter results.

“The global demand environment continues to be challenging as customers are cautious in their IT spending,” said Krishnakumar Natarajan, CEO & managing director, MindTree.

“However, with our strategic initiatives, we expect to achieve Nasscom’s current industry estimates for FY2013.”

MindTree shares gained over 5%, but finally closed 2.2% lower than Friday’s close on the BSE at Rs 643.5 a piece.