MindTree likely to report $55 million for FY05

Acquires Cosystems centre

MindTree Consulting is expected to close the current fiscal with a net margin of close $6 million (Rs 27 crore) on a top line of between $52-55 million (Rs 234 crore - Rs 247 crore) for the fiscal ending March 31, 2005.

The topline is almost 90 per cent growth over FY04 revenues of $29 million (Rs 130 crore). The company had reported a nominal net during last fiscal.

A spokesperson for the company said that the topline will be upwards of $50 million and added that MindTree does not comment on net margins.

The company during the past quarter has also acquired a captive development centre in Bangalore of CoSystems consisting of close to 20 professionals to augment its telecom vertical. This company brings to MindTree the capability to expand its domain capability in telecom switching.

CoSystems, a Silicon Valley-based company, is dedicated to delivering complex systems and building blocks to telecom operators, ISPs, cable operators, and to the emerging wireless voice and packet infrastructure markets.

MindTree by taking over this company's India development centre, gets CoSystems as one of its clients in addition to the competence they bring to MindTree. According to indications, the cost of this acquisition was in close to Rs 1 crore.

MindTree recently announced the inauguration of its fourth development centre located in Bangalore with an investment of Rs 85 crore and which will have a capacity for 1,300 professionals.

The company is also planning to add more capacity in Bangalore eventually to accomodate 5,000 professionals with an investment of Rs 200 crore.

This new centre is in addition to the one centre in Bangalore which houses 1,200 professionals, a centre in Hyderabad which currently has close to 75 developers, besides a unit in New Jersey with 100 developers.

MindTree currently has close to 2,000 developers and plans to touch 5,000 mark in 2-3 years time.