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Mindtree Q1 profits decline

Mindtree Q1 profits decline
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First Published: Mon, Jul 19 2010. 06 41 PM IST
Updated: Mon, Jul 19 2010. 06 41 PM IST
Bangalore: Mid-tier IT services firm MindTree Ltd said first quarter profit declined 72% to Rs15.8 crore on higher expenses on wage, travel and investment in its product business, and earning lower rates for customers.
Revenue grew 13.9% to Rs329.1 crore as volume grew the highest in the last eight quarters.
Ebitda margins or earnings before interest, taxes, depreciation and amortization as a percentage of sales dropped to 15% in the April-June quarter from 19% over the previous quarter.
“The outlook is good, we should achieve 18-19% margins by end of this fiscal” said Krishnakumar Natarajan, chief executive of MindTree Ltd. Volumes during the quarter increased by 7%, the average pricing dropped by 3.6% during the quarter.
The company added 31 new customers during the quarter, including an application, development, maintenance contract from Aadhar, the country’s unique identification project. The company plans to hire 3500 people this year.
MindTree expects to earn $10-11 million this year on its mobile product business, including building fourth generation LTE base stations. ”We are tracking with the same numbers,” said Natarajan.
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First Published: Mon, Jul 19 2010. 06 41 PM IST