Mindtree Q1 PAT seen up 23% at Rs 84 cr

Revenues, in dollar terms, are likely to go up by 0.5% to USD 105.6 million and in rupee terms, are seen going up by 9% to Rs 573 crore during the same period.

EBITDA is expected to go up to Rs 117 crore from Rs 98.5 crore and EBITDA margin too is seen improving to 20.41% in the first quarter of financial year 2012-13 as against 17.3% in the previous quarter.

Immediately after the fourth quarter of FY12, company had said they would beat Nasscom (The National Association of Software and Services Companies - the premier organisation that represents and sets the tone for public policy for the Indian software industry) guidance. But recently, they have guided growth to be at the higher end of Nasscom guidance (of 11-14%). So it means that they have lowered their growth outlook.

Analysts expect second half of FY13 will be stronger than first half. 

Growth in the IT services business will be offset by ramp-downs in the product engineering services business.

Company operates in two segments

Product engineering accounts for around 35% of total revenues: FY13 growth is expected to be in single digits

IT services division accounts for around 65% of total revenues: FY13 growth is likely to be higher than Nasscom guidance. Company had reported a growth of 37% in FY12.

Margins are likely to improve during the quarter due to rupee depreciation. Wage hikes awarded to 75% of its employee base (average: 8% offshore, 2% onsite) will only be effective from June 1st.