Mid-size IT services company Mindtree has crossed the $500 million (around Rs 3,000 crore) in revenues in FY14 which is also the fifteenth year of its operations. The Bangalore-based company, the fastest Indian IT services company to cross $100 million mark in revenues, had originally targeted to cross $1 billion by 2014.
In the fiscal ended March 31, 2014, Mindtree posted Rs 3,031.6 crore ($501.5 milion ) in revenues, an increase of 28% over the previous year while its net profit went up 33% at Rs 450.8 crore.
Growth during the year was backed by banking, financial services and insurance (BFSI), retail, and hi-tech, while travel vertical remained nearly flat on the back of a client-specific issue in Europe.
"FY14 has been a momentous year for Mindtree. We crossed half a billion dollars in revenues, $100 million in operating profits and Rs 100 of earnings per share," CEO and MD Krishnakumar Natarajan said.
For Q4 (January-March) of FY2014, Mindtree posted a 24.5% year-on-year growth in net profit at Rs 98.2 crore, while its revenue increased 34.5% to Rs 823.7 crore. When compared with the trailing quarter (on QoQ basis), the net profit and revenue rose 11% and 4.2%, respectively. The company also booked a foreign exchange loss of $6.9 million (around Rs 41.6 crore) during Q4.
Operating profit margins during the quarter rose 200 basis points quarter-on-quarter to 21.9%, on the back of improved revenues and other operational metrics. The company also saw a 2.2% growth in volumes during Q4, and 2.3% increase in realisations.
The company's Chief Financial Officer Rostow Ravanan said while the company hopes to maintain margins at the current level, it would be under pressure in the near-term due to few factors such as visa costs and volatility in Rupee. "Every $1 change in rupee has a 35-40 basis points impact on our margins," Ravanan said.
During Q4, Mindtree added 15 new clients, taking its total active clients to 207. The number of $5 million clients grew by two during the quarter to 24, while $1 million clients increased by five to 73.
Growth during the quarter was aided by a 7.2% increase in the consumer packaged goods, retail and manufacturing segment, and an over 6% growth in high-technology. The company also saw a strong momentum in infrastructure management services business, Natarjan said.
"We won several multi-year, multi-million dollar contracts during the year," Natarajan said. "In Q4 itself, we signed orders worth $133 million, the highest in the last four quarters."
Mindtree saw an uptick in attrition rate at 12.7% in Q4, as against 11.6% in the previous quarter. The company said it has not yet taken a decision on salary increments, as its wage hike cycle starts on July 1 of every year. Employee utilisation during the quarter was at 68.5% as against 67.4%.
Buoyed by the performance of Q4, Natarajan said, the company is confident of beating industry body Nasscom's guidance of 13-15% growth in the Indian IT services sector during FY15.
"With increased visibility, strong market momentum and good traction that we have seen in Q4, we expect to beat Nasscom's guidance for FY15."
via Business - Google News http://ift.tt/1l2dEQv
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