Mindtree Q4 profit rises 8.9%, announces hefty dividend

Mindtree Q4 profit rises 8.9%, announces hefty dividend
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Software services company Mindtree Ltd said on Wednesday net profit for the fiscal fourth quarter rose 8.9% to Rs 198.4 crore from Rs 182.2 crore a year earlier.

Net revenue for the quarter through March jumped 25.6% to Rs 1,839.4 crore, the company said. In dollar terms, the company hit the $1 billion revenue mark for the full year.

The company, which is the target of a hostile takeover by engineering giant Larsen & Toubro Ltd, also announced dividend payouts of about Rs 368 crore in three phases. The dividend payout, which includes a special dividend, is subject to the approval of shareholders. 

Mindtree said the dividend payout was within the capital allocation policy of the company and did not violate any corporate governance norms. 

Mindtree CEO and managing director Rostow Ravanan said that the dividend celebrates the twin achievement of hitting $1 billion in annual revenue and the company completing 20 years of its existence.

L&T had acquired a fifth of Mindtree from from Café Coffee Day owner VG Siddhartha last month for Rs 3,269 crore. Subsequently, it launched an open offer to buy an additional 31% stake in the company from public shareholders and 15% more from the open market.

If L&T’s plan goes smoothly, it could own close to 66% of Mindtree.