Moneycontrol Bureau
Midcap IT company Mindtree's third quarter net profit grew 2.5 percent sequentially to Rs 140.8 crore, which was slightly above expectations.
Profit was expected at Rs 136 crore on revenue of Rs 916 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Revenue climbed 2.6 percent quarter-on-quarter to Rs 911.7 crore in the quarter ended December 2014. Revenue in dollar terms increased 0.4 percent to USD 147.7 million, which was below estimates of USD 148.5 million. Dollar revenue growth in constant currency was 2 percent in the quarter against forecast of 2.5 percent.
The management (after second quarter earnings) had indicated revenue growth in Q3 would be muted due to the impact of seasonality and slower ramp-up of projects.
Net profit in dollar terms rose 0.3 percent to USD 22.8 million during the same period.
Operating profit jumped 6.3 percent to Rs 187 crore and margin expanded by 70 basis points to 20.5 percent during the quarter on sequential basis.
The software services provider said it has 201 active clients at the end of December quarter and it added one client to USD 50 million category during the quarter.
The company added 1,016 employees during the quarter on a gross basis. "Trailing 12 months attrition is at 18.1 percent," it added.
Meanwhile, Mindtree today approved the agreement to acquire entire ownership interest in Discoverture Solutions LLC, a limited liability company incorporated under the laws of the Arizona, United States. It also approved the agreement to purchase specified assets of Discoverture Solutions India Private Limited a company incorporated under the Companies Act, 1956.
"This acquisition is an all cash transaction for USD 15 million, payable over 18 months and earn outs based on future revenue targets," it said.
The company recommended an interim dividend of Rs 4 per share for the quarter ended December 31, 2014. Interim dividend will be paid to the registered shareholders by February 02, 2015.
The scrip of Mindtree (which announced earnings post market hours) closed at Rs 1,412.60, up 2.37 percent on the Bombay Stock Exchange.
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