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Short Term Investment – Mind Tree

MindTree was started in August 1999 by a diverse team of 10 professionals who came from three different nations and had already scripted successful careers.

MindTree Ltd. is a global IT and Product Engineering Services Company with deep knowledge in specific domains. MindTree is acknowledged as the best mid-size software services company out of India for its capability to build, test and deploy solutions as much as emphasis on culture, customer centricity and corporate governance.

EBTIDA margin improved by 438 bps QoQ to 17.3% in Q3FY12 against our expectation of increase in margin by 351 bps QoQ. Better than expected EBITDA margin improvement was led by onetime transition revenue from Europe based client, leading to significant improvement in billing rate.

The company reported forex losses of Rs.2.5 crore in Q3FY12 against our projection of forex gain of Rs.1.4 crore. However, lower than estimated tax of 17.4% in Q3FY12 against our expectation of 22% led higher than projected net profit of Rs.60.6 crore in Q3FY12 against our forecast of Rs.56.3 crore.

Volume declined by 0.8% QoQ against our expectation of 3.7% QoQ growth in Q3FY12. The de-grwoth was primarily led by Product Engineering Services PES) segment which declined by 5.4% QoQ to USD34.3 mn in Q3FY12. PES was impacted by lower number of working days and its exit from 9 clients in non focus areas (i.e. (industrial automation and core automotive) impacting revenue by 2.5% QoQ and 2% QoQ, respectively, in Q3FY12.

This entry was posted on Tuesday, January 24th, 2012 at 6:30 am and is filed under Short Term Investments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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