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Business News/ Companies / Company-results/  Mindtree’s March quarter net rises 9% to $15.9 mn
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Mindtree’s March quarter net rises 9% to $15.9 mn

Board approves proposal to raise the company's share capital to `800 crore from the existing `79.6 crore

Mindtree also said it would pay shareholders a special dividend, as the company completed its 15th anniversary.Premium
Mindtree also said it would pay shareholders a special dividend, as the company completed its 15th anniversary.

Bangalore: Mindtree Ltd, a software services provider, reported a better-than-expected 9% growth in quarterly net profit, helped mainly by more orders from clients, and said its board had approved a proposal to increase the company’s existing share capital by raising funds.

In a statement to stock exchanges, Mindtree said that its board of directors had approved raising the company’s share capital to 800 crore from the existing 79.6 crore.

Mindtree, which counts Microsoft Corp. and American Insurance Group Inc. (AIG) as top customers, also said it would pay shareholders a special dividend, as the company completed its 15th anniversary, and also give bonus shares in the ratio of 1:1, subject to shareholders’ approval. The total dividend payout will be 15 per share.

If the bonus share issue is approved by shareholders, the total dividend payout will be reduced by 5 per share, the company said.

For the quarter ended 31 March, Mindtree posted a net profit of $15.9 million, an 8.9% increase from the year-ago period. Revenue jumped 17% to $132.8 million.

Mindtree said it added 397 employees during the quarter on a gross basis.

The healthy numbers from Mindtree come a day after larger rival Infosys Ltd posted in-line revenue growth and predicted a 7-9% revenue growth for the 2014-15 financial year.

Last year, Mindtree moved to a different organizational structure as part of its new strategy defined by Bain and Co., collapsing two key positions—chief executive officer (CEO) of the information technology business and CEO of the products and engineering business—and dividing the company into four key business segments that report directly to Krishnakumar Natarajan, Mindtree’s CEO and co-founder.

On Wednesday, shares of Mindtree, which was founded by former Wipro Ltd executives in 1999, fell 1.3% to 1,380.65 on BSE. The benchmark Sensex fell 0.92% to close at 22,277.23 points.

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Published: 16 Apr 2014, 06:38 PM IST
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