Date:17/08/2004 URL: http://www.thehindubusinessline.com/2004/08/17/stories/2004081701850700.htm

Back MindTree upbeat on $50-m revenue

Vishwanath Kulkarni
Bharat Kumar

"We are in talks with several of the smaller firms with revenues of around $5 million and expect to conclude the deal by the year-end."

Bangalore , Aug. 16

SOFTWARE services firm MindTree Consulting Pvt Ltd expects its revenue to touch $50 million (about Rs 23,000 crore) by the end of the current financial year. The company, which closed 2003-04 with revenue of $29.2 million, is aiming to grow at around 60 per cent in the current fiscal, said Mr N. Krishnakumar, President and CEO, IT services, MindTree Consulting.

"We are seeing good traction and expect to sustain the growth momentum," Mr Krishnakumar said, adding that the company expects to close the current year with revenues between $46 million and $50 million. MindTree grew its revenues by around 60 per cent in 2003-04, over the previous year's $18.3 million.

Meanwhile, the company expects to close a small acquisition by the end of the current fiscal. "We are in talks with several of the smaller firms with revenues of around $5 million and expect to conclude the deal by the year-end," Mr Krishnakumar said.

The company is looking at inorganic growth to augment its package implementation practice and expand its technology practice portfolio that now focuses on embedded systems, System on Chip (SoC) and ASIC designing, BlueTooth, Wireless in Local Loop and storage technologies among others, he said.

The company had signed up with two large organisations, including General Electric, in the recent quarters.

MindTree has set up a development centre for GE with an initial strength of less than 100 professionals and has potential to scale up. "GE has the potential to emerge as one among the top clients over the next two years," Mr Krishnakumar said even while declining to name the other customer. MindTree client base consists of Cendant, Franklin Templeton, Volvo and the Unilever Group, among others. It added about 300 people during the first quarter to take its overall headcount to over 1,300. The company expects to increase its headcount to 2,000 by the year-end.