MindTree net dips 41% to Rs 32 cr

MindTree, the Bangalore-based information technology and product engineering services company, today said its fourth-quarter net profit fell 41 per cent from a year ago to Rs 32 crore on lower forex gains, withdrawal from the wireless product business and drop in revenues from a major client.

Total revenues during the January-March period rose 13.6 per cent to Rs 391.2 crore. For the year ended March 31, net profit declined 52.7 per cent to Rs 101 crore.

“A major reason for the decline in profit is that we had a mark-to-market gain of Rs 111.3 crore last financial year, which was a one-off item due to the rupee appreciation, while the same was only Rs 13.6 crore in 2010-11. Another reason for the decline in profit is that the entry and exit from the product business. It contributed to the fall of profit approximately around $8 million,” MindTree Chief Executive Officer Krishnakumar Natarajan said.

MindTree also attributed the loss in margin to wage revision. The company gave a 15 per cent wage hike to onshore employees and two-three per cent hike to onsite staff during 2010-11.

During the quarter, the company added 39 new customers, taking the total number of active customers to 277. The board also proposed a final dividend of 12.5 per cent, or Rs 1.25, per equity share of par value of Rs 10 each for the year ended March 31.

The company said margins will remain under pressure during the first two quarters of 2011-12, as it plans to add 4,000 employees.