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The profits of mid-tier IT company MindTree nearly doubled owing to a significant improvement in utilisation and depreciation of the rupee, during the quarter ended December 31, 2011.
MindTree which announced its third quarter results today, also said the company expects muted growth during the next quarter as “the global economic situation continues to be challenging.”
Its net profit rose to Rs 60.6 crore, a 98.7 per cent increase over the same quarter last year. Revenue grew by 35.1 per cent to Rs 519.7 crore from the same quarter last year.
The IT services business grew 6.7 per cent on a sequential basis. The PES (Product Engineering Services), however, declined by about 5.4 per cent during the same period partly because of billing freeze from customers, Mr Krishnakumar Natarajan, CEO & Managing Director, said.
Despite elongated sales cycles and the fact that customers are cautious, Mr Natarajan said the budgets are expected to be stable.
“None of our current customers have given any indications that they will cut budgets,” Mr Rostow Ravanan, Chief Financial Officer, said. “A very high degree of confidence will continue,” he added.
Attrition down
Attrition for the quarter was 19. 4 per cent, a decline from 21.7 per cent the previous quarter. MindTree added 846 people on a gross basis during the quarter, taking its total people strength to 10,934 as of December 31, 2011. “An increase in the number of campus graduates hired has helped reduce costs,” Mr Ravanan said.
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