Bonanza for shareholders: Mindtree declares special dividend of Rs 20 amid L&T takeover bid; lists 2 reasons

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Updated: April 17, 2019 5:03:28 PM

Mid-sized IT firm Mindtree, which is facing a hostile takeover bid by infrastructure giant L&T, on Wednesday, announced a special dividend of Rs 20 per share in its Q4 results.

The board also declared an interim dividend of Rs 3 per equity share for the shareholders.

Mid-sized IT firm Mindtree, which is facing a hostile takeover bid by infrastructure giant L&T, on Wednesday announced a special dividend of Rs 20 per share in its Q4 results. The board also declared an interim dividend of Rs 3 per equity share for the shareholders.

The company said in a regulatory filing that the announcement of dividend is to “celebrate the twin achievements of exceeding USD 1 billion annual revenue milestone and 20th anniversary of the company” subject to shareholders’ nod.

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“Mindtree has delivered exceptional performance for both the fourth quarter and the full fiscal year as we cross the historic USD 1 billion milestones. Over the course of two decades our strategy of being expertise-led and backed by a unique culture continues to help us attract world-class people and create customer successes,” Mindtree CEO & Managing Director Rostow Ravanan said.

Meanwhile, the Bengaluru-based company posted a net profit rise of 8.9 per cent to Rs 198.4 crore for Q4 against Rs 182.2 crore in the year-ago period. The revenue also surged by 25.6 per cent to Rs 1,839.4 crore in the said quarter against Rs 1,464 crore in the year-ago period.

The net profit in FY19 rose 32.2 per cent to Rs 754.1 crore, while revenue was higher 28.5 per cent to Rs 7,021.5 crore from the last fiscal year.

Mindtree is a technology consulting and services company that began in 1999. During FY18, Mindtree’s net profit stood at Rs 570 crore, up 37 per cent from over a year ago, while the revenues at Rs 5,463 crore, were up 4.33 per cent versus FY17. The company’s Ebitda (earnings before interest, tax, depreciation and amortisation) was up 3.34 per cent at Rs 741 crore in FY18.

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