Mindtree net profit up 14%

Company to hire 1,700 from campus in FY14

 

Mindtree, the Bangalore-based midsize information technology services company, reported a 14 per cent increase in its net profit at Rs 78.9 crore for the quarter ended March 31, as compared with the corresponding quarter in the previous year. The revenues of the company for the quarter at Rs 612.4 crore, grew 16.5 per cent on year-on-year basis.

However, on a sequential quarter basis (when compared with the previous quarter of FY13), the net profit declined by about 20 per cent, primarily because of the forex loss of about Rs 15.3 crore and increase in expenses due to the hiring of front-end resources in key geographies such as the US and Europe.

In the Q3 of FY13, the company had reported a foreign exchange gain of Rs 14.2 crore. The revenue growth on sequential quarter basis was moderate at 3.8%.

The EBITDA margin declined by 140 basis points in the Q4 to 19%. The company’s management through indicated a better outlook for FY14, sounded that the Q1 margins could be under pressure owing to increase in visa and employee-related costs. For FY14, the company has given offer letters to 1700 people of which 1000 are expected to join in the next two quarters.

For the full year, Mindtree’s net profit at Rs 338.9 crore jumped by 55% and revenues at Rs 2361.8 crore grew by 23.3%.

“In a challenging year, we have delivered revenue growth and better margins. We have also delivered consistently quarter after quarter, setting up a platform for continued improvements,” said Krishnakumar Natarajan, CEO & MD.

During the quarter, the company added 974 people on a gross basis which took its total headcount to 11,591 as of March 31, 2013. The company increased the number of its $20 million customers by one to 5.

To a query on the wage hike, Mindtree’s management said that the company is evaluating the industry and market trends, and would take a call on the same towards the end of June this year.

Bhubaneswar campus
Mindtree on Monday said that the first phase of its upcoming campus in Bhubaneswar is expected to be operational by June-July next year. The Bhubaneswar campus, Mindtree Kalinga, is being built upon 800,000 square foot area which will house three software development blocks, and one academic and one residential block.

Rostow Ravanan, CFO of Mindtree said the first phase of the projects involves the construction of the academic and residential block with a capacity of 500-600 people each. The company said it has earmarked an additional Rs. 80-110 crore towards this project.