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Huge forex loss hits MindTree net in fiscal 2010-11
Friday, 22 April 2011, 16:54 IST
Bngalore: Leading IT services and product firm MindTree Ltd suffered a forex loss of $10.7 million year-on-year (YoY), resulting in its consolidated net profit declining by a whopping 53 percent YoY to $22 million (
102 crore) in fiscal 2010-11 from $45 million (215 crore) in the previous fiscal 2009-10.
"The major reason for the decline in net profit was due to gain in net foreign exchange (forex) dropping by $10.7 million YoY to $3.4 million in FY 2011 from $14.1 million in FY 2010. As a result, net profit declined to $22 million in FY 2011 from $45 million in FY 2010," a company official told IANS late Thursday.
The other big impact on the company's bottomline is the loss of $8 million from its wireless products business.
The company acquired the Indian subsidiary of the US-based handset maker Kyocera Wireless Corporation (KWC) for $6 million in October 2009 to offer end-to-end design and technology services to wireless original equipment manufacturers (OEMs) and service providers.
Similarly, the city-based company said consolidated net profit for fourth quarter (Jan-March) of the fiscal under review (FY 2011) at 32 crore grew a mere 3.2 percent YoY from 31 crore.
Consolidated revenue for the fiscal under review, however, grew 16.4 percent YoY to 1,509 crore from 1,296 crore while it was a mere 1.6 percent YoY for fourth quarter to 391 crore from 385 crore.
"Our strategy of simplifying the organisation and focusing on our core strengths is yielding results. Our focus in the coming year will be to improve operational efficiency, concentrate on fewer verticals and take a leadership role in many of them," MindTree chief executive Krishnakumar Natarajan said in a statement later.
The company had 277 active customers, including 48 Fortune 500 clients at the end of fiscal 2011.
After co-founder Ashok Soota resigned as executive chairman March 31, the company appointed Albert Hieronimus April 1 as the new chairman of its board of directors.
Hieronimus, 62, is also chairman of German automotive major Bosch Ltd, formerly Mico Industries Co Ltd (MICO) and has been an independent director of MindTree since 2006.
Source: IANS
102 crore) in fiscal 2010-11 from $45 million (215 crore) in the previous fiscal 2009-10.
"The major reason for the decline in net profit was due to gain in net foreign exchange (forex) dropping by $10.7 million YoY to $3.4 million in FY 2011 from $14.1 million in FY 2010. As a result, net profit declined to $22 million in FY 2011 from $45 million in FY 2010," a company official told IANS late Thursday.
The other big impact on the company's bottomline is the loss of $8 million from its wireless products business.
The company acquired the Indian subsidiary of the US-based handset maker Kyocera Wireless Corporation (KWC) for $6 million in October 2009 to offer end-to-end design and technology services to wireless original equipment manufacturers (OEMs) and service providers.
Similarly, the city-based company said consolidated net profit for fourth quarter (Jan-March) of the fiscal under review (FY 2011) at 32 crore grew a mere 3.2 percent YoY from 31 crore.
Consolidated revenue for the fiscal under review, however, grew 16.4 percent YoY to 1,509 crore from 1,296 crore while it was a mere 1.6 percent YoY for fourth quarter to 391 crore from 385 crore.
"Our strategy of simplifying the organisation and focusing on our core strengths is yielding results. Our focus in the coming year will be to improve operational efficiency, concentrate on fewer verticals and take a leadership role in many of them," MindTree chief executive Krishnakumar Natarajan said in a statement later.
The company had 277 active customers, including 48 Fortune 500 clients at the end of fiscal 2011.
After co-founder Ashok Soota resigned as executive chairman March 31, the company appointed Albert Hieronimus April 1 as the new chairman of its board of directors.
Hieronimus, 62, is also chairman of German automotive major Bosch Ltd, formerly Mico Industries Co Ltd (MICO) and has been an independent director of MindTree since 2006.
Source: IANS
