MindTree profit rises 21% in Q1; revenue up 0.4%

Bangalore: Mid-tier information technology (IT) and product engineering services company Mindtree Ltd posted a marginal 0.4% rise in revenue for the quarter ended June to $105.5 million.

Net profit grew sequentially to 21.3% in to $16.7 million and 28.6% in rupee terms to Rs89 crore. In rupee terms, revenue grew 7% to Rs563 crore on the back of a weakening of the local currency.

From the year earlier, profit rose 116% and 157% in dollar and rupee terms, respectively.

IT services head Anjan Lahiri said the segment grew 3.1% to $72.7 million. Key verticals such as manufacturing and (BFSI) grew 4%. During the quarter, 19 new clients were added.

For the 2013 financial year, the management expects Mindtree as a whole to grow in line with Nasscom’s industry projections of 11-14 %, with the IT services segment again growing significantly ahead of the company.

The product engineering segment witnessed a couple of ramp downs during the quarter, thus impacting growth, but new accounts signed should offset that, he said.

Chief financial officer Rostow Ravanan said volume growth and pricing were more or less flat for the quarter. Ebidta margins improved to 20.8%.

sridhar.c@livemint.com