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MindTree retracts from record high as net profit rises marginally in Q3

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Capital Market
Last Updated : Jan 20 2015 | 1:00 PM IST

MindTree fell 0.96% to Rs 1,399 at 09:33 IST on BSE after net profit rose 2.5% to Rs 140.80 crore on 2.6% rise in revenues to Rs 911.70 crore in Q3 December 2014 over Q2 September 2014.

The result was announced after market hours yesterday, 19 January 2015.

Meanwhile, the BSE Sensex was up 115.44 points, or 0.41%, to 28,377.45

On BSE, so far 7,765 shares were traded in the counter, compared with an average volume of 27,981 shares in the past one quarter.

The stock was volatile. The stock hit a record high of Rs 1,428.75 in intraday trade today, 20 January 2015. The stock hit a low of Rs 1,394.15 so far during the day. The stock hit a 52-week low of Rs 649.20 on 19 May 2014.

The large-cap company has an equity capital of Rs 83.70 crore. Face value per share is Rs 10.

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MindTree had 201 active clients as of 31 December 2014. The company added one client to $50 million category in Q3 December 2014. The company had 13,323 employees as of 31 December 2014. It added 1,016 employees during Q3 December 2014 on a gross basis. Trailing 12 months attrition stood at 18.1%, the company said.

Meanwhile, MindTree also announced entering into definitive agreements to acquire Discoverture Solutions LLC (Discoverture), a leading provider of insurance solutions based in the US. With this acquisition Mindtree gained access to marquee clients and added300 experts across US, UK, Canada and India.

This acquisition is an all cash transaction for $15 million, payable over 18 months and earn outs based on future revenue targets. This agreement is subject to customary closing conditions and statutory/regulatory approvals, MindTree said.

Founded in 2002 and headquartered in Scottsdale, Arizona, Discoverture has subsidiaries in the UK, Canada and Bhubaneswar, India.The acquisition is subject to customary closing conditions and regulatory approvals.

MindTree's board of directors, at its meeting held on 19 January 2015 recommended an interim dividend Rs 4 per share for the quarter ended 31 December 2014.

Krishnakumar Natarajan, CEO & Managing Director, MindTree said, Our clients continue to look at MindTree as their partner of choice for Digital Transformation, all the way from innovation to rapid execution. Our ability to drive significant optimization in our chosen verticals, in IT and application management, remains a strong foundation for delivering sustained value to our clients. Together with digital, the MindTree story is becoming stronger than ever before.

MindTree delivers technology services. MindTree specializes in e-commerce, mobility, cloud enablement, digital transformation, business intelligence, data analytics, testing, infrastructure, EAI and ERP solutions.

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First Published: Jan 20 2015 | 9:33 AM IST

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