Mindtree beats estimates, Q3 net profit up 37 p.c.

BANGALORE, INDIA: Information technology solutions company, Mindtree Limited, has registered a QoQ growth of 36.8 per cent in its net profit. The company announced its third quarter (Q3 FY2013) results on Friday.

Its revenues stood at Rs. 5,901 million (a decline of 1.0 per cent QoQ) and net profit at Rs. 988 million. Compared to the corresponding period last year, it is a 63 per cent growth (in Rupee terms) in net profit for the company.

"Our revenue growth has been satisfactory, despite a seasonally weak quarter. We are very pleased that our efforts to reposition and strengthen our business continue to yield good results, as can be seen in our strong profitability improvements," said Krishnakumar Natarajan, chief executive officer & managing director, Mindtree Limited.

"Our expertise led positioning is helping us develop deeper customer relationships and deliver transformative changes for existing and new customers."

He also informed that they had a gross addition of 443 employees last quarter, which took the total headcount to 10,952 employees. "We have planned to on-board 600 recruits from campuses in the fourth quarter."

Anjan Lahiri, president of IT Services, said that they would decide on the number of lateral recruits based on their business needs.

The company's pipeline, said Natarajan, is far more healthy that how it was in the last quarter and he added that they were not hearing any negative sentiments from their customers.

As of December 31, Mindtree had 245 active clients, out of which its $5-million customers increased from 4 to 21 and $10-million customers from to 9. Replying to a query on when they would add a $50-million client, Lahiri said that it might take another 5-6 quarters.