MindTree Consulting, the Bangalore-based provider of IT and R&D services, has registered a 21.11% increase in net profit at Rs 27.13 crore for the second quarter ended September 30, 2007 when compared with the same period of the last fiscal.
The company attributed the increase in profit to volume growth (12.7%) and pricing growth (3.4%) during the quarter under review. The company had a foreign exchange gain of Rs 3.25 crore and Rs 7.02 crore as other income from fixed term investments.
The company improved its offshore volume contribution during Q2FY08 to 72.7% from 71% in Q2FY07.
The company added 28 new clients, and deepened some existing client relationships to take its active client base to 192. Consequently, its revenues for the period went up 18.37% to Rs 181.95 crore when compared with the corresponding period of the last fiscal.
Revenue from IT services increased 20% to Rs 141 crore, and income from R&D services went up 12.3% to Rs 40.88 crore.
"We have achieved strong growth in revenue and profitability despite the continued appreciation of the rupee. In the backdrop of a strong business environment, we are confident of achieving our revenue target of $178-180 million and profit target of $22.5-22.6 million for 2007-08," Ashok Soota, chairman and managing director, MindTree, said.
MindTree increased the number of $1 million clients from 34 to 41. It recruited 784 people during the quarter to take the total number of employees to 4,896 .
The construction of MindTree’s development centre in Chennai is on schedule, and the company expects to begin occupying the centre during the third quarter of 2007-08. With a focus on further strengthening its presence in the European market, MindTree opened an office in The Hague, the Netherlands, during the quarter.
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