Mindtree gains from weak rupee in Q2

Global IT solutions firm Mindtree Ltd gained from the depreciation of the rupee against the dollar, registering a whopping 79 percent increase in net profit year-on-year (YoY) by posting Rs.129 crore, as against Rs.72 crore in the same quarter a year ago.

Sequentially, however, net profit declined 4.4 percent from Rs.135 crore in the first quarter (April-June) of this fiscal (FY 2014).

"Consolidated revenue for the quarter under review (Q2) increased 29 percent YoY to Rs.770 crore as against Rs.596 crore in same period year ago and 19 percent sequentially from Rs.648 crore in first quarter (Q1)," the Bangalore-based company said here.

Under the International Financial Reporting Standard (IFRS), net income shot up 61 percent YoY to $21 million but declined 16 percent sequentially from first quarter, while revenue grew 16 percent YoY to $124 million and 5.4 percent quarter-on-quarter.

"Execution of new strategies has delivered two consecutive quarters of strong revenue growth this fiscal. We continue to invest in expertise-led solutions and attract industry talent to drive positive outcomes for our customers, Mindtree chief executive Krishnakumar Natarajan said in a statement here.

The company had 220 active clients during the quarter, with 21 $5-million customers.

With gross addition of 1,122 techies in the quarter, the company's headcount went up to 12,941 employees by Sep 30.

The company's board recommended an interim dividend of 50 percent (Rs.5) per equity share of Rs.10 at par value for the first six months (April-Sep) of this fiscal.