<p>Mid-sized IT firm MindTree today posted an over two-fold increase in net profit at Rs 68.9 crore for the quarter ended March 31, driven by strong growth in software services.<br /><br /></p>.<p>The company had posted a net profit of Rs 32 crore in the year-ago period.<br /><br />The income from software services increased over 34 per cent to Rs 525.7 crore in the reported quarter from Rs 391.2 crore in Q4 FY2010-11.<br /><br />On a full-year basis, the company's net profit stood at Rs 218.5 crore as against Rs 101.6 crore in 2010-11.<br /><br />Income from software services grew over 26 per cent to Rs 1,915.2 crore in 2011-12 from Rs 1,509 crore in 2010-11.<br /><br />"FY 2011-12 has been a great year. We got the leadership team to a 'back to basics' approach, which has helped to grow margins consistently each quarter.<br /><br />"We focused on a few verticals and did deeper mining of existing relationships," MindTree CEO and Managing Director Krishnakumar Natarajan said in a conference call.<br /><br />Going forward, MindTree believes it will continue to deliver higher revenue growth than industry estimates in FY 2012-13 and improve EBITDA margins further, he added.<br /><br />The company has, however, cautioned against uncertain global environment and currency volatility.<br /><br />"Though budgets are stable, there is delay in decision making...We foresee muted growth in Q1," he said adding that "People are conscious but are not panicking".<br /><br />The company also sees increased visa costs as a challenge in the short-term.<br /><br />MindTree added 502 people (gross) during Q4, taking its total people strength to 11,000 as of March 31, 2012.<br /><br />"We have given campus offer letters to 3,000. The number of lateral hires will depend on the demand," Natarajan said.<br /><br />The company has earmarked a capex plan of USD 25-30 million for FY2012-13.<br /><br />"A large portion of this would go towards facility expansion, one in Whitefield, another in Mysore and on a new training and product development facility in Bhuwaneshwar. <br /><br />Another portion would be towards people addition," MindTree Chief Financial Officer<br /> Rostow Ravanan said.<br /><br />The investments are focussed on bringing in higher profitability for the company, he added.<br /><br />MindTree said the effective tax rate for the company could go up to 21-22 per cent this fiscal as two of its SEZ units would move to 50 per cent rebate (under SEZ rules) from 100 per cent rebate.<br /><br />The Board of Directors have recommended a final dividend of 15 per cent (Rs 1.50 per equity share of par value Rs 10 each) for the year ended March 31, 2012.</p>
<p>Mid-sized IT firm MindTree today posted an over two-fold increase in net profit at Rs 68.9 crore for the quarter ended March 31, driven by strong growth in software services.<br /><br /></p>.<p>The company had posted a net profit of Rs 32 crore in the year-ago period.<br /><br />The income from software services increased over 34 per cent to Rs 525.7 crore in the reported quarter from Rs 391.2 crore in Q4 FY2010-11.<br /><br />On a full-year basis, the company's net profit stood at Rs 218.5 crore as against Rs 101.6 crore in 2010-11.<br /><br />Income from software services grew over 26 per cent to Rs 1,915.2 crore in 2011-12 from Rs 1,509 crore in 2010-11.<br /><br />"FY 2011-12 has been a great year. We got the leadership team to a 'back to basics' approach, which has helped to grow margins consistently each quarter.<br /><br />"We focused on a few verticals and did deeper mining of existing relationships," MindTree CEO and Managing Director Krishnakumar Natarajan said in a conference call.<br /><br />Going forward, MindTree believes it will continue to deliver higher revenue growth than industry estimates in FY 2012-13 and improve EBITDA margins further, he added.<br /><br />The company has, however, cautioned against uncertain global environment and currency volatility.<br /><br />"Though budgets are stable, there is delay in decision making...We foresee muted growth in Q1," he said adding that "People are conscious but are not panicking".<br /><br />The company also sees increased visa costs as a challenge in the short-term.<br /><br />MindTree added 502 people (gross) during Q4, taking its total people strength to 11,000 as of March 31, 2012.<br /><br />"We have given campus offer letters to 3,000. The number of lateral hires will depend on the demand," Natarajan said.<br /><br />The company has earmarked a capex plan of USD 25-30 million for FY2012-13.<br /><br />"A large portion of this would go towards facility expansion, one in Whitefield, another in Mysore and on a new training and product development facility in Bhuwaneshwar. <br /><br />Another portion would be towards people addition," MindTree Chief Financial Officer<br /> Rostow Ravanan said.<br /><br />The investments are focussed on bringing in higher profitability for the company, he added.<br /><br />MindTree said the effective tax rate for the company could go up to 21-22 per cent this fiscal as two of its SEZ units would move to 50 per cent rebate (under SEZ rules) from 100 per cent rebate.<br /><br />The Board of Directors have recommended a final dividend of 15 per cent (Rs 1.50 per equity share of par value Rs 10 each) for the year ended March 31, 2012.</p>