The Hindu Business Line : Bigger volumes push MindTree Q4 net up

Bangalore, April 16 MindTree Ltd, an IT and R&D services company, reported 37.3 per cent rise in fourth quarter revenue, predominantly helped by growth in volume and billing rates. Net profit for the quarter rose 41.5 per cent to Rs 34.70 crore, while revenue increased to Rs 217.80 crore, the company said in a statement.

Mr Rostow Ravanan, Chief Financial Officer, said that on a stand alone basis, the company saw a one per cent increase in pricing, but when consolidated with Purple Vision, it fell to 0.2 per cent. MindTree bought Purple Vision, the Indian unit of French electronic design and manufacturing services company TES Services Solutions S.A., in November 2007.

Revenue outlook

MindTree said that for fiscal 2009, the company expects $228 million to $238 million in software revenue. Net profit is expected to be $31.7 million to $33.1 million.

The company said its Board recommended a final dividend of Re 1 per share on a face value of Rs 10, subject to approval from shareholders. It has paid an interim dividend of Re 1 per share, it said. The share moved up 2.28 per cent at closing at the BSE on Wednesday against Tuesday’s close price of Rs 399.20.

MindTree said revenue from India increased to 8.9 per cent of total revenue, compared with 4.7 per cent in the corresponding quarter last year. Revenue from US declined to 62.4 per cent from 64.7 per cent.

IT income

For the fourth quarter, IT services constituted 77.8 per cent of total income, the company said. The remaining came from R&D services. The company said that while its clients didn’t panic due to a slowdown, they are keen to leverage the maximum benefit from money spent.

Mr Janakiraman, President and Chief Executive, R&D Services, said that in the R&D services business, system companies comprise 70 per cent of income.

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