MindTree lines up Rs 102 crore capex

Bangalore-based MindTree, an IT solutions company, has lined up a capital expenditure of around $20.5 million (Rs 102 crore) for 2009-10. The investment will be towards creating additional facilities in Chennai and Bangalore.

Speaking to Business Standard at a Nasscom conference here, Krishnakumar Natarajan, managing director and chief executive officer of MindTree, said the proposed investment of $20.5 million was up from $11.5 million last year.

The company is setting up a 3,000-seat facility, which will focus on software development, at Mahindra City in Chennai.

On its Bhubaneswar proposal, Natarajan said the company had acquired 20 acre there for setting up a software testing and product development facility. “Investment in the new facility is in the drawing stage.”

During the current fiscal, the company is planning to recruit 250 people from various campuses. It currently employs 7,860 globally.

For the year ending March 31, 2009, MindTree's consolidated revenues rose 46.1 percent to $269.1 million (Rs 1,345 crore), while net profit declined 55.5 per cent to $11.4 million (Rs 57 crore), it said in a statement.

For the fiscal 2009-10, the company has set a target to increase the revenues to $290-300 million (around Rs 1,450-1,500 crore) and net profit to $38-39 million (Rs 190-195 crore).

The company is looking at verticals including energy and independent testing in infrastructure, which would lead the growth, said Natarajan.