Mindtree

The day the company announced its Q1FY14 numbers, the stock hit a new 52-week high. A forex gain on account of rupee depreciation of Rs.62 crore and sizeable other income of Rs.12 crore together helped boost the bottomline. The company ended Q1 with a net profit at Rs.135 crore, up 72% (QoQ) and up 52% (YoY). This was on a muted 6% (QoQ) and 15% (YoY) rise in net revenue at Rs.648 crore. The rise in net profit was much above expectations and it was mainly on account of the falling rupee, advantage of which we might see in current Q2 too.

In terms of segments, Hi-Tech vertical led, followed by BFSI, manufacturing, CPG & retail and travel & transportation. In terms of geography, US was the top revenue earner followed by Europe, rest of the world and India. Geography-wise, US was the top revenue earner followed by Europe, rest of the world and India.During the quarter the company added 1,057 employees (gross) and had 12,239 employees, as of June 30. It added 9 new clients and had 222 active customers and its US$ 10 million customers grew to 10. The company is to give a wage hike of 6-8% to 80% of its employees effective July 1, 2013, 18% effective October 1 this year and 2% effective November 1. It is also making 700 campus recruitments in this fiscal of which it has hired about 400 during the April-June quarter. Looking ahead, the company hopes to see the same growth momentum in Q2 an the wage hikes would be offset by rupee fall.