Mindteck (India) posts net sales of Rs 100cr,growth of 127%

Mindteck (India) Ltd, a global IT services company, has decided to consolidate its group operations. The promoters of Mindteck, Embtech Holdings , will thus consolidate Mindteck and four other IT services companies where Embtech Holdings either has 100% ownership or a majority stake.

The company announced its consolidation decision in the Board meeting held on June 29, 2007. The company also announced its annual results for the FY 2006-07.

The four companies to be consolidated would be Mindteck Singapore Pte Ltd , Mindteck (UK) Ltd , Infotech Consulting , Inc. and Primetech Solutions, Inc .

For its targeted four off-shore acquisitions, Mindteck (India) will pay a consideration of $ 2.50 million for Mindteck Singapore Pte Ltd, US$ 0.50 million for Mindteck UK Ltd, US$ 21 million for Infotech consulting and US$ 6.60 million for Primetech Solutions. The consideration for the same will be paid by a combination of cash and fresh issue of shares of the company. This consolidation proposal is subject to the company securing all requisite shareholder and regulatory approvals.The company also proposes to simultaneously raise fresh equity upto US $ 10 million through a private placement with financial institutional investors.

Commenting on the consolidation exercise, Mr Pankaj Agarwal, Group CEO of the company said, “With this exercise, Mindteck will be amongst the larger mid-cap players in the Indian IT space with large number of clients across the globe.”

The revenues of the combined entity of Mindteck including the four target companies would be US$ 66 million for the FY 2006-07. The consolidation would bring in significant savings from operational integration of the five entities, which will directly translate into profits of the combined entity.

Mindteck would employ more than 1,000 people globally and would have offices in six countries and 13 cities of the world including USA, UK, Bahrain, India, Singapore, and Malaysia with several Fortune 100 companies as its clients.

Adds Mr Agarwal, “With a large pool of people, several distinct service lines, offshore capabilities, project delivering capabilities globally, Mindteck would be able to compete for large projects against the best in the world.”

Mindteck would have a much bigger footprint in the US market and it would employ more than 400 people in the US, with its US Headquarters in Harrisburg, PA. Considering that the US market continues to be the biggest IT spender and market in the world, Mindteck will be able to service its clients much better.  

For the year ended on March 31, 2007, on a consolidated basis, the company has registered a net sales of Rs 100 crores (PAT Rs 2.32 crore) as against a net sales of Rs 44 crores (PAT Rs 1.80 crore) for the year ended on March 31, 2006, an increase of 127 per cent. On the paid up capital of Rs 9.72 crore, the EPS for the FY 2006-07 stands at Rs 2.39, as against Rs 1.85 of the corresponding period of the previous year.

Sourced From: Prana Public Relations