Bombay Stock Exchange (BSE)
The Bombay Stock Exchange (BSE) building is illuminated during the Diwali special trading session celebrating the annual Hindu festival of lights in Mumbai November 3, 2013.Reuters

Bengaluru-based mid-size IT firm Mindtree's profits grew 35.1 per cent in the December 2018 quarter while its consolidated net profit touched Rs 191.2 crore year on year.

The company's revenue rose 29.7 per cent to Rs 1,787.2 crore during the period from Rs 1,377.7 crore in the said quarter, a regulatory filing reveals.

In dollar terms, the net profit went up 22.2 per cent to $26.9 million, while the revenue increased 17.4 per cent to $251.5 million in the December 2018 quarter as against the same period of the previous year.

The earnings report helped Mindtree shares rise Rs 22.8 or 2.71 per cent to reach Rs 864 by noon on Thursday.

"Our consulting first approach combined with deep technology and domain expertise is helping our clients drive enterprise-wide transformations," Rostow Ravanan, Mindtree CEO and managing director, said in a note.

He said this also helped the company sustain its growth momentum, even in a seasonally weak quarter.

"Our continuous investment in our people has strengthened our ability to create sustainable value for all stakeholders," he said, according to a media report.

The Mindtree board of directors has recommended an interim dividend of Rs 3 per equity share.

The company employs 19,908 people. Mindtree said its digital business grew 32.4 per cent in the quarter, year on year.

However, the shares of Mindtree have lost 14 per cent since its second quarter (Q2) earnings announcement in October against the 2 per cent decline of the sectoral Nifty IT, index, according to a report in Mint. The management commentary accompanying the third quarter has turned cautious.

The company's dependence on the top clients, a matter of investor concern, has eased slightly, according to reports. The revenue contribution of the top 10 clients has moderated from 44.8 per cent in Q2 to 44.1 per cent, indicating a slight diversification of the revenue base.

The $1 million client bucket has seen five additions and deal wins have picked up compared to a year ago, according to reports. Management claims the deal pipeline is strong and expects the growth in Q4 to be better than in Q3, aided by an incremental recovery in the banking, financial services and insurance verticals. The margins, the management says,  are likely to be stable, with the company planning to reinvest the efficiency gains from the higher revenue.

Mindtree was recently in the news after VG Sidharth, Café Coffee Day founder, and his affiliate firms, who together control the largest share of stakes in Mindtree announced a decision to sell their shares.