Mindtree on a volatile ride

Mindtree is on a pretty volatile ride today morning. Reacting to the Q3FY15 numbers it announced yesterday evening, the stock hit a new 52-week high at Rs.1428.75 but soon after that high, profit booking came in and the stock has now slipped to 1366 levels, down 3.25%.

The market was indeed enthused with the company’s Q3 numbers. Sequentially, the company’s net profit for the quarter rose 2.5% at Rs.141 crore and as this came in better than expectations, the stock hit a new high. Revenue during the quarter was up 3% at Rs.912 crore. But in terms of dollar revenue, it came in below expectations at US$147.7 million, up by a meagre 0.4%. Net profit in dollar terms rose 0.3% at US$22.8 million.

Like TCS, Mindtree has also indicated that Q3 might see some stress due to slower ramp-up of projects and Q3 being seasonally a weak quarter, given the holiday season world over. EBITDA was up 6% at Rs.187 crore while margins showed a 70 bps rise to 20.5%.

During the quarter, it added one client to its US$50 million category and had 201 active clients. It added 1016 employees during Q3, taking the total employee tally to 13,232.

Along with the results, the company also announced that it has signed an all-cash transaction for US$15 million to acquire entire ownership interest in Discoventure Solutions, USA. This cash is payable over the next 18 months.