MindTree Consulting revenue at Rs.5903.5 million, posts PAT of Rs.900 million

April 30, 2007 - Bangalore, India
MindTree Consulting closes FY 2006-07 with Rs 5903.5 Million in revenues & Rs 900 Million in profit after tax

MindTree Consulting Ltd., an international IT and R&D Services Company, announced its results today for the 2006-07 financial year (FY) as approved by its Board of Directors.

Highlights from the Recently Completed Fiscal Year Ending March 31, 2007

- Profit After Tax (PAT) grew by 66.1%
- Revenues increased by 31.5%
- Earnings per share (EPS) grew by 44% to Rs 29
- IT Services revenue grew by 30% to Rs 4458.8 Million
- R&D Services revenue grew by 37% to Rs 1444.6 Million

Other FY 2006-07 Highlights

- MindTree commenced operations in Chennai and acquired land in Bhubaneshwar to build its fifth development center in India
- MindTree opened offices in Dallas, Munich, Stockholm and Sydney, bringing the total number of worldwide offices to 18
- MindTree launched its Infrastructure Management and Tech Support Practice (IMTS)
- 17 new customers were added during the recently completed quarter, bringing the current active customer base to 155, including 36 Fortune 500 companies
- Total number of MindTree Minds increased to 4162 at the end of the year, a net addition of 1034 people during the FY

Speaking on the results, MindTree Consulting Chairman & Managing Director Ashok Soota said, "At the beginning of the year, we set for ourselves the ‘90:15 objective’. This meant satisfaction rating of 4 or higher on a scale of 5 from 90% of our customers and 15% in profit after tax. We are glad that we achieved our objectives on both fronts. Both our businesses and their industry verticals and practices contributed to strong growth in 2006-07." He added, "MindTree’s strong fundamentals are reflected in the overwhelming response we received to our IPO in March 2007. We remain confident of continuing to build a very valuable Company in the future."

Guidance for FY 2007-08

- For FY 2007-08, MindTree expects to achieve $178-180 Million in revenues, indicating a growth of 36% at the higher end
- PAT is expected to be in the range of $25.1 to $25.2 Million, 26.4% growth at the higher end
- EPS is expected to be in the range of Rs 28.9 and 29.5
- The above guidance is on the basis of Rs 42.25 /$

Dividend

The Board of Directors has recommended a final dividend of Rs 1 per share subject to approval by the shareholders at the Annual General Meeting scheduled in July 2007. Earlier in the year, MindTree had paid out an interim dividend of Rs 1 per share.

Company Awards and Recognition during FY 2006-07

- MindTree was recognized among the world’s top 100 outsourcing service providers in 2007 by the International Association of Outsourcing Professionals
- MindTree was a recipient of the Most Admired Knowledge Enterprises (MAKE), India award in 2006
- MindTree was ranked 2nd in the Best Companies to Work For Survey conducted by Business Today-TNS-Mercer. The survey ranked companies across all industries
- MindTree placed 6th in the Great Places to Work Survey conducted by Businessworld and Grow Talent across all industries

Board of Directors

The Board of Directors was reconstituted in November 2006 with the inclusion of five new members as independent directors. They are Dr Albert Hieronimus, Managing Director of Motor Industries Co. Ltd. and Chairman of Robert Bosch India Ltd., George Scalise, President of Semiconductor Industry Association (SIA) in the U.S., Mark Runacres, Consultant in a range of fields, including at The Energy and Resources Institute (TERI), N. Vittal, former Chief Vigilance Officer and an accomplished public administrator and R Srinivasan, former Managing Director of Widia (India) Ltd.

Source : Equity Bulls

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