Krishnakumar Natarajan, Co-founder, CEO & Managing Director, MindTree Ltd has a bachelor’s degree in mechanical engineering from the College of Engineering, Chennai, India, and a Master’s in Business Administration majoring in marketing and systems from the Xavier Institute, Jamshedpur, India. He has over 30 years of IT industry expertise and is a respected authority in the global IT sector. KK has played key roles in Mindtree, including setting up the US operations, driving expansion in Europe, Asia Pacific and transforming Mindtree’s IT services business. Today, KK’s mission as CEO is to lead the company to be an expertise-led organization. KK is an active member of professional industry organizations, such as the Manufacturer’s Association for Information Technology (MAIT) and the Confederation of Indian Industry (CII). He is a regular speaker at reputed conferences and is a faculty member at management schools worldwide. Prior to co-founding Mindtree, KK was Chief Executive of the ecommerce and financial solutions division at Wipro, and held several key positions from 1982 until 1999. During this time, KK started and grew the ecommerce division of Wipro, served as Group Vice President of human resources and was also Chief Marketing Officer for Wipro’s IT business.
Mindtree is a global information technology solutions company with revenues of over US$400 mn. Our experts are driven to engineer meaningful technology solutions to help businesses and societies flourish. Mindtree’s consulting-driven approach makes us a strategic partner to many Fortune 500 enterprises. Our domain expertise, unique culture and technical excellence help businesses thrive and be future-ready. We enable our customers achieve competitive advantage through flexible and next generation global delivery models, agile methodologies and expert frameworks.
Yash Ved of IIFL provides you highlights of a recent conference call, where Krishnakumar Natarajan says “We have added 232 active customers as of March 31, 2013 and $20 million customers increased from 1 to 5.”
Comment on your performance for FY13?
FY13 has been a landmark year for Mindtree. In a challenging year, we have delivered revenue growth and better margins. We have also delivered consistently quarter after quarter, setting up a platform for continued improvements.
We have made solid investments in leadership development, brand building and sales force enhancement. We are confident that all these will help us create an expertise led organization that delivers sustained growth and shareholder value.
For the full year, net profit margin increased by 290 bps, a growth of 55% in rupee terms. ROCE improved to 36% from 29% in FY12.
Infrastructure Management and Technical Support (IMTS) increased by 8.8% q-o-q and 53.2% y-o-y. For the full year, IMTS grew by a robust 41%.
Going forward, FY14 would be better than FY13.
Brief us about your financials?
For the fourth quarter and year ended March 31, 2013 revenue stood at Rs6,124 mn (growth of 3.8% qoq / 16.5% yoy), while Net profit at Rs789mn (decline of 20.1%qoq / growth of 14.0% yoy)
The Board of Directors, at its meeting held on April 22, 2013, recommended an interim dividend of 40% (RS4 per equity share of par value Rs10 each) and a final dividend of 50% (Rs5 per equity share of par value Rs10 each) for the year ended March 31, 2013, subject to approval by Shareholders at the forthcoming AGM. Along with the interim dividend of 30% (Rs 3 per equity share of par value Rs10 each) declared in October 2012, the total dividend for the year comes to 120% (Rs12 per equity share of par value Rs10 each).
In view of the improved predictability and stability of the Company’s operations, the Board intends to maintain similar or better levels of dividend payout over the next few years. However the actual dividend payout in each year will be subject to the investment requirements of the annual operating plan for the year and any other strategic priorities identified by the Company.
We have added 232 active customers as of March 31, 2013 and $20mn customers increased by 1 to 5.
What is your employee strength?
Our current employee strength stood at 11,591 employees as of March 31, 2013. We have added 974 employees during the quarter on a gross basis
The company plans to hire 1,700 fresh graduates this year. The company will decide on wage hike in June.
What were major client wins for the quarter?
A large deal from an infrastructure services provider in one of the largest emerging market economies. In partnership with an existing customer, Mindtree will provide cloud platform support, in a multi-year engagement.
A large hotel chain: Mindtree will provide managed services for application and infrastructure support.
A renowned non-profit, non-government organization: Mindtree will provide service desk and End User Computing (EUC) services for its users across multiple countries.
What is your revenue mix?
55% of our revenue comes from US, 29% from Europe, 6% of revenue from India and remaining 9% from ROW.