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MindTree Q1 net up sharply, cuts FY10 outlook

MindTree Q1 net up sharply, cuts FY10 outlook
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First Published: Mon, Jul 20 2009. 08 47 PM IST
Updated: Mon, Jul 20 2009. 08 47 PM IST
Mumbai: IT firm MindTree Ltd on Monday said net profit saw a rose sharply in the first quarter helped by market-to-market gains, but cut its FY10 outlook on “highly uncertain” market environment.
The Bangalore-based firm expects to post a net profit of $30.4-36.8 million on revenue of $255-270 million in the year ending March 2010, it said in a statement.
The company had forecast a profit of $37.7-$39 million on revenue of $290-$300 million for the period in April.
“The business situations in the client environment and in the segments which we operate continue to be challenging, and we expect that the growth will be muted for the next few quarters,” MindTree’s chief financial officer Rostow Ravanan said on a conference call.
MindTree offers software and research and development services.
Earlier in the day, the company said consolidated revenue rose by 13.7% to $62.1 million in first quarter while net profit rose 466% to $11.56 million.
On a sequential basis, the company said business volume declined 3.4% and pricing declined 3.8%.
Software firms which have enjoyed a scorching pace of growth in the past have seen subdued growth with a shadow on the future as well as customers cut budgets and seek price cuts.
“Overall, pricing is moving on to being more stable, the sort of accute pressure early in the calendar year has subsided,” Ravanan said.
On the hiring front, MindTree said it had not planned for any campus additions. The company, which has a headcount of 7,693, also said the headcount came down by 173 people in the quarter.
Shares of the company ended nearly 14% higher at Rs553.65 in a strong stock market.
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First Published: Mon, Jul 20 2009. 08 47 PM IST