Mindtree shares slump 18% to Rs 806 post-Q2 results on cautious business outlook
Trading sentiment in Mindtree were hit as the company maintained a cautious business outlook amid volatile macroeconomic scenario across the world.
New Delhi: Shares of IT firm Mindtree cracked 18 percent on Friday as the company's September quarter earnings failed to cheer investors.
The scrip opened the day on a weak note and later plunged 17.66 percent to Rs 806 on BSE.
At NSE, shares of the company slumped 18 percent to Rs 801.10.
Trading sentiment in the stock were hit as the company maintained a cautious business outlook amid volatile macroeconomic scenario across the world.
"We sense a cautious and a volatile macroeconomic scenario in the world and that will pose some challenges to the business environment. In addition, Q3 has a regular seasonality factor as well. Inspite of these headwinds, we are confident that we have a very strong pipeline," Mindtree CEO and Managing Director Rostow Ravanan had said in a conference call Wednesday.
Mid-sized IT firm Mindtree on Wednesday posted a 65.4 percent rise in consolidated net profit at Rs 206.3 crore for the September quarter and exuded the confidence of registering strong revenue growth for the full fiscal despite "some challenges in the global business environment".
Stock markets were closed on Thursday for Dussehra.
The company had registered a net profit of Rs 124.7 crore in the year-ago period.
Its revenues rose 31.8 percent to Rs 1,755.4 crore in the quarter under review from Rs 1,331.6 crore in the year-ago period. On a sequential basis, the net profit was higher by 30.4 percent, while revenue grew 7.1 percent.
There was no demand made by I-T Department before attaching Mindtree shares and for a “potential” tax demand of Rs 625 crore, shares worth Rs 3,000 crore were attached.
Mindtree is in the midst of a takeover battle, with Larsen & Toubro (L&T) seeking to take control of the mid-sized IT firm.