Shares of IT firm Mindtree today jumped, extending gains to the third straight day. Mindtree shares rose as much as 4% to ?1,449 on BSE, gaining nearly 10% in three days. The Bengaluru-based company on Monday said it has bagged a five-year deal from The Nordex Group to help the wind turbine manufacturer simplify, modernise and transform its entire IT landscape globally.
Mindtree shares have strongly rebounded from their April lows of ?691. In October last year, Mindtree shares had hit a 52-week high of ?1,605.45.
As The Nordex Group’s business transformation partner, Mindtree will provide scalability to support the company’s growth plans, a statement said.
The Nordex Group is an integrated global manufacturer of innovative onshore wind turbine systems. Mindtree Executive Director and President (Global Markets) Venu Lambu said, “The scope includes the standardisation and roll out of new projects and operational processes, the consolidation of existing IT services, and the development of a future-ready cloud platform which maintains a robust cybersecurity posture.”
“Demand for wind power will continue to grow globally and so will Nordex. Delivering to our expanding international customer base reliably and securely will require standardisation and simplification of our underlying systems,” Nordex Group CIO Stefan Ewald said.
Technically, analysts had turned bullish on Mindtree shares after its price breakout from a symmetrical triangle pattern. In a November 20 note, domestic brokerage Anand Rathi had said: “Given above is the daily chart of MINDTREE which depicts that the stock has confirmed a breakout from a pattern which resembles a symmetrical triangle. The pattern has a theoretical target of around 1460.”
“In addition, on the daily chart we are witnessing that the RSI is turning from the support of 40 and there is decent rise in open interest also. Thus traders can buy the stock with given trade setup,” it had said.
Mindtree had posted a big jump in its consolidated net profit to ?253.7 crore for the September 2020 quarter, and said it was confident of continuing its growth momentum. The company, which had registered a net profit of ?135 crore in the September 2019 quarter, will also roll out salary hikes with effect from January 1, 2021.
The Bengaluru-based company saw its revenue grow marginally to ?1,926 crore in the September 2020 quarter from ?1,914.3 crore in the year-ago period.
The company attributed the strong growth in profits to operational efficiencies.
News Source:- Livemint