MindTree rallies on SAP contract

NEW DELHI: Shares of MindTree climbed over 5 per cent on Tuesday after the IT firm informed the stock exchanges that it has bagged a contract from Sweden-based Molnlycke Health Care for its SAP application suite.

The IT firm did not disclose the size of the contract. It said the deal will help drive strategic transformational programmes for Molnlycke to increase cost effectiveness of the surgical and wound care solutions firm.

MindTree announced the development after market hours of Monday. The impact was visible on the stock, which rallied as soon as the opening bell rang on BSE.

The stock rose 5.11 per cent in hit a day’s high of R 1,488. It was quoting nearly 7 per cent lower than its 52-week high of Rs 1,589.10 it had hit on April 9.

“As part of this engagement, MindTree will develop and manage SAP modules ranging from advanced planning and optimisation, material management, sales, distribution to finance. MindTree will also focus on standardising workflows and streamlining operational processes, leading to constant innovation, cost effective delivery and flexible solutions,” the IT company told BSE.

MindTree’s proportion of revenues from the US increased steadily to 67.5 per cent in 1QFY16 from 59.2 per cent in 1QFY15, while that from Europe moderated to 21.9 per cent from 26.8 per cent.