After hostile takeover from L&T, Mindtree shares tank nearly 11 pc

IT firm Mindtree shares plunged nearly 11 per cent on Thursday after the company posted a 41.4 per cent decline in consolidated net profit for the June quarter.

Shares of the company tanked 10.22 per cent to Rs 675.05 — its 52 week low — on the BSE.

At the NSE, it tumbled 10.62 per cent to a one year low of Rs 670.95.

Mid-sized IT firm Mindtree Wednesday posted a 41.4 per cent decline in consolidated net profit to Rs 92.7 crore for the June quarter, but exuded confidence in delivering “above-industry growth rates” in 2019-20.

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The company, which has been in limelight over its hostile takeover by construction major Larsen and Toubro (L&T), had registered a net profit of Rs 158.2 crore in the corresponding period of the previous financial year.

Mindtrees revenues, on the other hand, rose 11.9 per cent to Rs 1,834.2 crore in the June 2019, quarter as compared with Rs 1,639.5 crore in the year-ago period.

On a sequential basis, Mindtree saw its net profit decline 53.3 per cent from Rs 198.4 crore in March quarter, while revenue declined marginally from Rs 1,839.4 crore in the fourth quarter.

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