Management commentary on slower revenue growth for the second quarter could have also weighed on the stock.
Shares of Mindtree fell over 6 percent in the morning trade as investors turned wary after the company reported 13 percent drop in its net profit for the June quarter. The management commentary on slower growth in the upcoming quarter could have also led to the fall.
The stock touched an intraday high of Rs 1,058.00 and an intraday low of Rs 977.20.
Mindtree reported results on July 18, which were above analysts' estimates, helped by a strong deal pipeline. The company also announced that its chief financial officer had stepped down to pursue another opportunity.
Jagannathan Chakravarthi Narasimhan, who was with Mindtree for about 10 years, earlier worked at Bharti Airtel and HCL Technologies. His successor will be found within the next three months, chief executive Rostow Ravanan said in a post earnings conference call.
Net profit for the quarter ended June was Rs 158.2 crore, a decline of 13.2 percent from the previous quarter.
Revenue for the quarter was Rs 1639.5 crore, a sequential growth of 12 percent.
Analysts polled by Reuters, on average, expected revenue of Rs 1,566.3 crore, and profit after tax of Rs 154.3 crore.
Mindtree expects the second quarter revenue growth to be slightly lower than the first quarter, but reiterated its strong growth expectations for the full year.
"We are on track to improve margins in FY19...we see Q2 margins slightly better than Q1 excluding currency fluctuations," outgoing CFO Narasimhan said.
The stock has lost around 8 percent in the past three days. At 09:30 hrs Mindtree was quoting at Rs 993.90, down Rs 68.65, or 6.46 percent, on the BSE.
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