MindTree net dips 40 percent yearly, recovers sequentially (Lead)

January 18th, 2011 - 10:06 pm ICT by IANS  

Bangalore, Jan 18 (IANS) Leading IT and product engineering services firm MindTree Ltd posted net profit of Rs.305 million (Rs.30.5 crore) for third quarter (October-December) of this fiscal (2010-11), a decline of 40 percent year-on-year (YoY) from Rs.505 million though 31 percent higher sequentially from Rs.233 million.In a regulator filing Tuesday, the Bangalore-based company said revenue, however, grew 16 percent YoY to Rs.3.85 billion, but remained flat sequentially with a marginal decline of 0.1 percent.

In dollar terms too, net income declined 41 percent YoY to $6.73 million but shot up 35 percent sequentially from second quarter.

Similarly, revenue grew 21 percent YoY to $85.3 million, which is 3.5 percent higher sequentially.

“Our IT services business continues to show good growth momentum with a 7.6 percent sequential growth. We are also beginning to see growth trend in product engineering services,” chief executive Krishna Kumar Natarajan said in a statement here.

The decade-old high-tech company has 269 customers, including 48 from Fortune 500 clients.

“In line with growth prospects and demand for talent, the company added 1,021 people to take its headcount to 9,671.

“We have completed the restructuring of the wireless business at a cost of $3.7 million, which is lower than the original estimate of $12-14 million made in the beginning of the quarter under review,” Kumar said.

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