MindTree net falls 20% on forex loss - Daily News & Analysis

Software services provider MindTree Ltd on Monday reported a 20.1% quarter-on-quarter decline in January-March net profit due to a foreign exchange loss of Rs 15.3 crore. The company reported a net profit of Rs78.9 crore for the quarter under review, down from Rs98.8 crore in October-December, but beating Street estimates of Rs78.2 crore. The company declared an interim dividend of Rs4 a share. On a year-on-year basis, MindTree's net profit grew 14%. Income from operations for the fourth quarter stood at Rs612 crore, marginally higher from the Rs590 crore reported in October-December. The topline, however, was up 16.5% on year. According to estimates by nine brokerages, MindTree was seen reporting a 21% sequential drop in net profit for the quarter ended March 31. The Bangalore-based company's revenue during the period was estimated to rise 3% on quarter to Rs610 crore.  In dollar terms, MindTree's net profit fell 20.8% sequentially to $14.6 million, while revenue rose 2.9% to $113.0 million, the company said in a notice to the exchanges. During the quarter under review, business volume improved 3.7%, while price realisation declined marginally by 1.4%. As of March 31, the company had 232 active customers. During the reporting quarter, the company gross added 974 employees, taking its total staff strength to 11,591 as of March 31. Further, the company said its quarterly annualised attrition had come down to around 11.6% during the quarter from 13.7% during October-December. For the full year ended March, MindTree's net profit rose 55% to Rs339 crore, and income from operations stood at Rs2,362 crore, up 23% on year. Speaking in a conference call following the earnings, managing director and chief executive officer Krishnakumar Natarajan said the company's growth in 2012-13 had been impacted mostly in the product engineering services division due to volatility in segments such as semiconductor and consumer devices, resulting in client ramp downs. Looking ahead, the company expects 2013-14 to be better than the financial year that ended March 31. "We expect growth momentum in Q4 to continue in Q1 and therefore we expect a positive start to the year," Natarajan said. However, the company expects its profit margins to decline marginally in April-June due to fresh hiring of campus graduates, and also due to filing of visas for employees. The company plans to intake 1,700 fresh graduates this year. The company has earmarked capital expenditure of $20 million for the full year. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEo6eCOsB3xM5zQonmB06JHLDDQTA&url=http://www.dnaindia.com/money/1825902/report-mindtree-net-falls-20pct-on-forex-loss

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