Mid-sized IT firm MindTree today posted a 63 per cent jump in net profit to Rs 98.8 crore for the third quarter ended December 31, 2012, driven by uptick in revenues in a seasonally weak quarter.
The company's net profit stood at Rs 60.6 crore in the year-ago period. Sequentially, it was up 36.8 per cent compared to net profit of Rs 72.2 crore in July-September quarter.
"Our revenue growth has been satisfactory despite a seasonally weak quarter. The deal pipeline is also looking healthier than last year," MindTree CEO and Managing Director Krishnakumar Natarajan told reporters in a conference call.
On the demand environment, Natarajan said, "We hope to maintain the same growth in Q4 and expect stronger demand momentum. FY'14 should to better than the current fiscal."
He added that the clients are comfortable and optimistic with their budgets. The company expects rise in demand from US and Europe, which together contribute more than 75 per cent to the revenues of the Indian IT sector.
The company's income from software services grew 13.54 per cent to Rs 590.1 crore for the Q3 FY'13 as against Rs 519.7 crore in the same quarter previous fiscal.
Of this, while Rs 176.5 crore came from product engineering services vertical, Rs 413.6 crore was contributed by the IT services business in the reported quarter.
During the third quarter, Mindtree registered a forex gain of USD 2.6 million (about Rs 14 crore) against a loss of USD 7.5 million (about Rs 41 crore) in the second quarter.
It had posted a forex loss of Rs 2.7 crore in October-December 2011 quarter.
The company added eight clients during the quarter, taking the active client base to 245.
"Number of USD 5 million customers increased by 4 to 21 during the quarter, while one client was added in the USD 10 million customers base taking the tally to nine," he said.
Anjan Lahiri, President of IT Services, said the company is in discussion with a USD 50 million client and "we may announce a deal fairly soon".
The US contributed 55.8 per cent to Mindtree's revenue, while Europe and India accounted for 30.2 per cent and 6.3 per cent, respectively.
The company added 443 people (gross) and 69 (net) during the quarter, taking its total headcount to 10,952 people.
"Nearly 600 people who were given campus offers will be taken on board in the current quarter. Rest of the hiring will be done based on the business demand," Lahiri