The Hindu Business Line : MindTree net jumps 66.1%

Mr Ashok Soota, Chairman and Managing Director, MIndTree Consulting (right) and Mr Subroto Bagchi, COO, at a news conference in Bangalore on Monday. - G.R.N. Somashekar

Bangalore April 30 Fresh off its IPO, MindTree Consulting on Monday reported a 66.1-per cent rise in net profit at Rs 90 crore on revenues of Rs 590.35 crore that grew by 31.5 per cent for fiscal 2006-07.

Revenues from its IT services grew by 30 per cent to Rs 445.8 crore while research and development increased by 37 per cent to Rs 144.4 crore.

Earnings per share (EPS) grew by 44 per cent to Rs 29.

The Board of Directors recommended a final dividend of Re 1 per share for fiscal 2007. Earlier, MindTree had paid out an interim dividend of Rs 1 per share.

MindTree scrip opened Monday at Rs 782.20 at BSE and tracking the results it closed at Rs 793.90.

GUIDANCE

The sudden and strong rupee appreciation, which continued this fortnight, reflected in the guidance given by the firm. For fiscal 2007-08, MindTree expects a profit of $25.1 million (about Rs 106-106.4 crore) and $178-180 million (about Rs 752-760 crore) in revenues.

EPS is expected to be in the range of Rs 28.9-29.5. "This muted growth is taking into consideration the rupee-dollar exchange rate and the fact that the ESoP exercise will only impact next year," said Mr Rostow Ravanan, CFO, MindTree Consulting. 3.65 lakh ESoPs have been converted into stocks.

MindTree's new set up at Bhubaneshwar will be operational in 2008. The company launched its infrastructure management and tech support practice, which it expects will be one of its significant businesses.

Mergers and acquisitions will also form a major part of the firm's future strategy, said Mr Ashok Soota, Chairman & Managing Director, MindTree Consulting.

MindTree added 156 people during the quarter and 1,034 during the year, raising the headcount to 4,162. It hopes to add 1,600 more in the coming year.

Of this, about 62 per cent will be from campus selections (including non-engineering graduates).

Attrition rate in the fourth quarter stood at 15 per cent, said the COO Mr Subroto Bagchi.

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