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MindTree posts Q1 loss on hedges

MindTree posts Q1 loss on hedges
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First Published: Wed, Jul 16 2008. 10 47 PM IST
Updated: Wed, Jul 16 2008. 10 47 PM IST
Mumbai: R&D and software services firm MindTree Ltd reported on Wednesday a net loss of $3.2 million (Rs13.82 crore) for the quarter to June on account of provisions on derivatives positions.
The depreciation in the rupee resulted in a provision of $12 million on the company’s outstanding derivative instruments, it said. The rupee depreciated 6.8% against the dollar in the April-June quarter. The company has forex hedges worth $78.8 million of which about $48 million were option contracts. It was in these contracts that the company booked losses, chief financial officer Rostow Ravanan said.
“We continue to see good traction for both IT services and R&D services business, and are confident of achieving our revenue and profit guidance for the year,” said chief executive Krishnakumar Natarajan. For the quarter, revenues rose 39% to $54.3 million, MindTree said.
Reuters
Mint’s Vishwanath Kulkarni in Bangalore contributed to this ­story.
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First Published: Wed, Jul 16 2008. 10 47 PM IST