FY13 growth will be less than Nasscom projection: MindTree

Company's net profit in 2nd quarter grows 33%

Raising concerns over the uncertain global economic environment, midsize information technology services company MindTree has moderated its growth projection for the financial year 2013. The Bangalore-based company, which had earlier projected revenue growth of 11-14 per cent on a par with the Nasscom guidance, today said it was expecting the growth to come down to below 11 per cent.

“Given the uncertain global economic environment, we are seeing delays in decision making in the short-term. Engineering services continue to be volatile especially in the telecom and semiconductor segments. Given these challenges, we believe that our growth will be less than 11 per cent for the full year,” said Rostow Ravanan.

In the quarter ended September 30, MindTree reported 33 per cent increase in its net profit to Rs 72.2 crore when compared with the corresponding quarter in the previous year. The revenues at Rs 596.3 crore grew 30.6 per cent on year-on-year basis.

However, when compared with the previous quarter of FY13, the company’s net profit declined about 19 per cent on account of a forex loss of Rs 41.5 crore. The revenues grew by about six per cent sequentially. MindTree added 11 customers during the quarter which took its total number of active customers to 247.

The company which gave a wage hike to all their employees in the beginning of the quarter reported a drop in attrition rate to 14.7 per cent from 16.3 per cent reported in the previous quarter.

Meanwhile, Mindtree has announced expansion of its board with addition of Anjan Lahiri, president, IT Services as a director. The company has also nominated N S Parthasarathy, president and COO as an alternate director to S Janakiraman who continues as the president and CTO in the company.