Mid-tier IT services company Mindtree Ltd on Monday reported 49% year-on-year growth in March quarter net profit at ₹473 crores as against ₹317 crores in the last year period.

Revenue from operations, meanwhile, rose 37% to ₹2,897 crore as compared to ₹2,109 crores in the corresponding quarter of the previous fiscal.

On Monday, Mindtree shares closed 3.27% lower at ₹3,965 apiece on NSE.

“Our industry-leading growth through a year of rapid business and technology shifts demonstrates the relevance of our value proposition in reimagining businesses and driving digital transformation at scale," said Mindtree CEO and MD Debashis Chatterjee.

Earlier during the day, Bloomberg reported that Larsen & Toubro Ltd. is weighing a merger between two of its publicly traded software firms Mindtree and L&T Infotech, as the Indian conglomerate seeks scale to compete with global digital giants.

The boards of Mindtree Ltd. and Larsen & Toubro Infotech Ltd., two software units controlled by the Mumbai-based engineering firm, could consider share swap ratios for the merger as early as next week.

The company's board has recommended a final dividend of ₹27 per equity share for the financial year ended March 31, 2022.

Larsen acquired control of Mindtree in 2019. The conglomerate holds about a 61% stake in the company, which has a market value of $8.3 billion and has around 74% of L&T Infotech, which has a market capitalization of $13.6 billion, data compiled by Bloomberg show.

“Our sequential revenue growth of 5.2% in constant currency made this our fifth consecutive quarter of 5%-plus growth in constant currency. Our full-year revenue growth of 31.1% validates our strategy to capitalize on rising demand by diversifying our services portfolio, mining customers, and broadening industry partnerships," Chatterjee said.

In dollar terms, revenue was $383.8 million, showing a growth of 4.8% quarter-on-quarter and 33% year-on-year.

Mindtree reported an EBIT (earnings before interest and tax) of ₹549 crores for the March quarter, up 40% over last year's period, while margins shrank marginally at 18.9%.