Improved operations and change in strategy helped mid-tier IT firm MindTree drive profits up 115.3 per cent in the fourth quarter of 2012.
The net profit for the fourth quarter ended March 31, 2012 was Rs 68.9 crore, a 115 per cent growth from the same quarter last year. Revenues grew 34.4 per cent to Rs 525.7 crore from the same quarter last year.
“Multiple reasons like growth in IT services by 37 per cent, broadening employee base with campus graduates, and focus on winning large deals yielded to the strong growth,” Mr Krishnakumar Natarajan, CEO, said.
For the year 2012, the profits grew 115 per cent over the previous year to Rs 218.5 crore. Revenues went up 26.9 per cent over the previous year to Rs 1,915.2 crore.
About 62 per cent of revenues came from IT services with verticals such as BFSI, manufacturing and travel contributing largely to the revenues, Mr Natarajan said.
Despite economic conditions, MindTree expects to grow ahead of the industry in fiscal 2013, but expects the growth rate to be slower than fiscal 2012 as it exercises caution in segments such as BFSI, according to Mr Natarajan.
“Client feedback tells us that while the budgets are stable, decision making is slower leading to narrow visibility,” he added. “We expect muted growth in the initial quarters,” he added.
Capex plan
Next fiscal, the company will increase efforts to pursue large deals and invest in front-end teams to pursue large deals, he said. The capex for the year will be about $30 million, Mr Rostow Ravanan, CFO, said. The company will chase large maintenance transitioning deals in the applications development and infrastructure space.
MindTree has already made 3000 offers for campus graduates for next year and will hire laterals “on a planned and required basis”, Mr Natarajan said.
Attrition in 2012 came down to 18.2 per cent on a 12 month basis, he added. The company currently has 11,000 employees.
In fiscal 2012, the company saw a range of leadership changes with one of the founders Mr Subroto Bagchi being elected Chairman while three directors resigned from the Board.