Mindtree Q2 PAT seen up 7.5% at Rs 37.1 cr

11724 Investors following MindTree. Share this News with them.

0

Like this story, share it with millions of investors on M3

Mindtree Q2 PAT seen up 7.5% at Rs 37.1 cr

Software services provider Mindtree is expected to report a growth of 7.5% QoQ in profit of Rs 37.1 crore for the quarter ended September 2011. In the previous quarter, company had posted net profit of Rs 34.5 crore.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ News and Notices about MindTree See interviews with MindTree Management See what other Experts & Brokerages are saying about MindTree See previous Results of MindTree

Software services provider Mindtree is expected to report a growth of 7.5% QoQ in profit of Rs 37.1 crore for the quarter ended September 2011. In the previous quarter, company had posted net profit of Rs 34.5 crore.

Revenues are seen going up by 9.4% to Rs 452 crore from Rs 413.1 crore quarter-on-quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to jump to Rs 59 crore from Rs 46 crore

Company's Q1 was a great quarter after many disappointing ones (FY11 PAT was down 52.7%).

Q2 highlights

* Expect the momentum to continue from last quarter

* New revenue is coming from European clients and 3 recent large infrastructure management deals (together USD 100 million in size over five years) that are ramping up

* Alert Q1: Dollar revenues went up 7.3%, volume growth at 6.2%, pricing up 1.1%

* Margins are seen higher due to rupee depreciation + pricing recovery (post the near 15% decline in the past two years), + employee pyramid and efficiency gains

* It has received price increases from 20+ customers in 1QFY12 and management is targeting price increases from at least 30 customers/quarter going forward, according to brokerages

* Management expects utilization to dip in 2Q due to intake of 900 campus recruits in Q2 (Q1 at 72.5%)

* Attrition high at 25.6% versus 25.1% QoQ - concern

Management commentary positive

* Management is confident of showing growth higher than industry rate (Nasscom 16-18%) and expects margin expansion in the coming quarters
* The pricing environment is fairly stable and it is able to get hikes when deals come up for renewal
* The pipeline in the IT services business remains healthy and there has been modest recovery in the product engineering business as well.