Mindtree’s Net Profit Surges 72%

In its numbers for the June 2013 quarter, Mindtree announced a growth of 71.61% in its net profit. Following this, the company’s share prices hit a six-year high, touching Rs 966.20 per share.

During the period under review, Mindtree’s revenues grew sequentially by 4.16% to USD 117.7 million. It also saw volumes growth of 4.13% and pricing growth of 4.52%. Overall, this is indicative of a strong performance.

On the profitability front, the company’s EBITDA grew by a flat 0.47% to USD 21.6 million, but the net profit increased by 68.49% to USD 24.6 million. In rupee terms, this marked a growth of 71.61% and stood at Rs 135.4 crore.

The company had gained tremendously from foreign exchange, which helped its profits grow. In Q1FY14, it gained a total of Rs 61.8 crore in forex as against a loss of Rs 15.3 crore in Q4FY13. While this was the major booster in its numbers for the quarter, it doesn’t take away from the company’s performance, which came in strong on the revenues, volume and pricing front.

Mindtree also saw robustness in its order book. The total number of active clients in Q1FY14 stood at 222 as compared to 232 in Q4FY13. While this is ostensibly a drop, the company managed to add 9 clients in Q1FY14, whereas it had added 5 in Q4FY13. At the same time, although it reduced 2 clients in the USD 1 million bracket, it added 1 client in the USD 10 million bracket.

Although its gains can largely be attributed to cross-currency movement, the recent client wins and order book make the outlook of the company positive.