MindTree
shares rose 4% on
Monday morning after the software services exporter reported slightly
better-than-expected profit growth in its first quarter earnings and said it
expects to match NASSCOM's full year industry growth guidance of 11-14%,
despite challenging environment.
The Bangalore-based
company's net profit for April-June more than doubled year-on-year (29%
quarter-on-quarter) to Rs 89 crore. Quarterly revenue, however rose a little
lower-than-expected 36% (7% sequentially) to Rs 563 crore.
Analysts on average
had expected MindTree to report a net profit of Rs 84 crore on revenue of Rs
573 crore.
Last week India's top
IT firm Tata Consultancy Services had reported better-than-expected 38% year-on-year (14.6%
sequentially) growth in Q1 net profit at Rs 3,280.5 crore, while revenue was
also up 38% (up 12% quarter-on-quarter) to Rs 14,869 crore.
Rival and Number two
player Infosys , on the other hand,
missed expectations with 33%year-on-year (down 1% sequentially) rise in first
quarter net profit at Rs 2,289 crore, while revenue was barely in-line at Rs
9,616 crore, up 29% (up 9% quarter-on-quarter). It also cut its US dollar
revenue growth forecast to just 5% for the full year, flagging some pricing
pressures, slower IT spends and currency volatility.
MindTree's net profit
in US dollar terms rose 116% (21% quarter-on-quarter) to USD 16.7 million,
while revenue rose 14% (0.4% sequentially) to USD 105.5 million.
It also flagged off
challenges in global environment and slowing IT spends, but expects to meet
industry body NASSCOM's growth guidance for FY13.
"The global
demand environment continues to be challenging as customers are cautious in
their IT spending. However, with our strategic initiatives, we expect to
achieve NASSCOM's current industry estimates for FY13," said Krishnakumar
Natarajan, MindTree's CEO and MD.
MindTree's EBITDA
margin rose to 20.8% in the first quarter from 18.7% in Q4 and 11.2% in the
year ago first quarter.
"Our margins have
shown consistent improvement over the last 4 quarters and we will continue to
focus on operational efficiencies as we move forward," Nagarajan said.
MindTree had a forex
gain of Rs 8.6 crore in the first quarter, compared with a forex loss of Rs 3.7
crore in Jan-March and a Rs 9.1 crore gain in the year ago quarter.
MindTree said it
added19 clients in April-June and had 245 active customers as of June 30.
It added 272 employees
on a gross basis last quarter, taking its total employee count to 10,830. Its
attrition rate was down to 17% in Q1 from 25.6% in the year ago quarter.
"The results are
in-line on the operational front and solid margin performance is encouraging in
our view. Management comments on revenue and margins are also positive,"
said Srivathsan Ramachandran of Spark Capital.
At 11:00 hrs, MindTree
shares were up 3.8% at Rs 681.85 on NSE.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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