Mindtree, on Monday, reported a 55 per cent jump in net profit at Rs.339 crore in 2012-13, despite terming the year as a ‘difficult’ one.

The company reported standalone revenues of Rs.2,362 crore during the year, 23 per cent higher than a year earlier. However, the company reported a sequential decline of 20.1 per cent in net profit at Rs.78.90 crore during the fourth quarter, mainly on account of a foreign exchange loss of Rs.15 crore, compared to a gain of Rs.14 crore during the preceding quarter. In the fourth quarter, the company reported revenues of Rs.612.40 crore.

Mindtree Managing Director and CEO Krishnakumar Natarajan said the company had fared well by registering revenue growth as well as improved margins in a “challenging” year. “We have set up a platform for continued improvements,” he added.

Mr. Natarajan said the company’s slackening pace of earnings from the product engineering services (PES) affected the overall growth. The share of this segment’s contribution to overall revenues slipped from 34.42 per cent in 2011-12 to 30.10 per cent in 2012-13. Volatility in the semiconductor and consumer devices segments affected demand for services in the company’s PES line of business, he added.

Mr. Natarajan said the company hoped to fare much better in the current year, mainly because of the ‘enhanced’ sales teams it had constituted. The company plans to hire 1,700 freshers during the current year, and would take a decision on a wage hike in June.

On the company’s new campus in Bhubaneswar, Mr. Natarajan said the first phase of the project would be completed by June, 2014. Mindtree has invested $15-20 million in the new facility.


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