Shares of midsize IT company Mindtree fell over 10 percent on Thursday following weak first-quarter results with 41.4 percent decline in consolidated net profit.

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Mindtree stock price fell 10.6 percent to Rs 670.95 per share intraday, hitting its 52-week low. At 9.36 AM, it was trading 8.77 percent lower at Rs 684.90 per share, while the Nifty was down 37.45 points, or 0.32 percent, at 11,650.05.

The company posted a consolidated net profit of Rs 92.7 crore for the quarter ended June 30, while the revenue rose 11.9 percent to Rs 1,834.2 crore in the quarter. The operating margin for the IT company fell to 6.4 percent, its all-time low.

Kotak Institutional Equities maintained a 'reduce' call on the bank with the target price cut to Rs 725 per share citing weak quarterly results and sharp margin contraction. It said the company's revenue growth can recover, provided attrition is contained.

The brokerage house also cut the earnings per share estimates by 15-21 percent amid revised currency assumption and pricing pressure.

"We have delivered stable results in the face of many uncertainties, reflecting the unique strengths of Mindtree. This quarter saw us achieve an all-time high contract closure which sets the pace for the rest of the year," Mindtree chief executive officer and managing director Rostow Ravanan said.

First Published:Jul 18, 2019 10:04 AM IST