Mindtree
Mindtree, a Bangalore head-quartered mid-cap product engineering and IT services firm has been reporting a stellar performance for the past two quarters. For Q2FY14, consolidated revenue was Rs. 770 crore, up 19% QoQ and 29% YoY, as dollar revenues increased 5.4% QoQ. Key cost component, employee expenses as a percentage to revenue, declined further during the quarter to 57.8%, from 59.0% sequentially. Manufacturing and travel and transportation verticals, together, accounting for over 40% of revenues, grew at 23% and 22% QoQ in the quarter ended 30th September 2013, which are also its high margin segments, clocking operating profits of 28% and 24% respectively. However Q2 PAT shrunk 5% QoQ to Rs. 129 crore (Rs. 135 crore in Q1FY14) due to lower forex gains of just Rs. 20 crore, vis-à-vis Rs. 62 crore in the immediately preceding quarter. This is mainly on account of company’s accounting policy with respect to foreign exchange (forex) rates, wherein, it considers the forex rate at the beginning of a month for the whole month. Thus, with rupee consistently depreciating in Q2, company took a hit versus peers. Nevertheless, it reported currency gains, as against expectations of a forex loss for the quarter.
H1FY14 EPS stood at Rs. 63.56, which is three-fourth’s of what company earned in the whole of last year, although half yearly revenues of Rs. 1,417 crore make up just 60% of the previous year’s revenue. Net margins for H1FY14 improved further to 18.6% on net profit of Rs. 264 crore. Company has declared an interim dividend of Rs. 5 per share, as surplus cash per share as of 30th September 2013 stood at Rs. 127, on networth of Rs. 1,457 crore.