MindTree’s income from software services increased 34% to Rs525.7 crore in the fourth quarter ended 31 March 2012
New Delhi: Mid-sized IT firm MindTree posted an over two-fold increase in net profit at Rs68.9 crore for the fourth quarter driven by strong growth in software services, reports PTI. The company had posted a net profit of Rs32 crore in the year-ago period.
The income from software services increased over 34% to Rs525.7 crore in the reported quarter from Rs391.2 crore in Q4 FY2010-11.
On a full-year basis, the company's net profit stood at Rs218.5 crore against Rs101.6 crore in 2010-11. Income from software services grew over 26% to Rs1,915.2 crore in 2011-12 from Rs1,509 crore in 2010-11.
The company has earmarked a capex plan of $25-$30 million for FY2012-13. “A large portion of this would go towards facility expansion, one in Whitefield, another in Mysore and on a new training and product development facility in Bhuwaneshwar. Another portion would be towards people addition,” MindTree chief financial officer Rostow Ravanan said.
MindTree said the effective tax rate for the company could go up to 21%-22% this fiscal as two of its SEZ units would move to 50% rebate (under SEZ rules) from 100% rebate. The board of directors have recommended a final dividend of 15% (Rs1.50 per equity share of par value Rs10 each) for FY11-12. MindTree added 502 people (gross) during Q4, taking its total people strength to 11,000 as of 31 March 2012.
At 2:31pm, MindTree shares were trading 9% higher at Rs532.35 per share on the Bombay Stock Exchange, while the benchmark Sensex was up 1.7% at 17,349.56.
The reduced cost of borrowing is expected to be passed on partially by banks to borrowers in the form of lower interest rate on loans
Mumbai: Home, auto and corporate loans are likely to become cheaper as the Reserve Bank of India (RBI) on Tuesday slashed the short term lending rate sharply by 0.50% to 8%, signalling banks to cut rates, reports PTI.
The reduced cost of borrowing is expected to be passed on partially by banks to borrowers in the form of lower interest rate on loans.
"The RBI has taken a bold step. The reduction in the policy rate by RBI would translate into lowering of interest rates. Base rates are expected to come down by about 25 basis points," Canara Bank Executive Director AK Gupta told PTI.
Base rate is the minimum lending rate below which banks can't lend. Lowering that would mean reduction in all loans. To bring down the cost of borrowings for banks, RBI slashed short term lending (repo) rate after a gap of 3 years.
Besides, RBI's move to ease liquidity situation would result in the infusion of much needed cash flows into the banking system, he said.
In the Annual Monetary Policy, 2012-13, RBI doubled borrowings under the Marginal Standing Facility for banks to 2% of their deposits with immediate effect to ease liquidity. It also permitted banks to borrow under the MSF even if they have excess government securities holdings.
IDBI Bank Executive Director RK Bansal said the monetary action will help boost growth and RBI has given a strong message to cut interest rates.
He said IDBI Bank would take a view on the interest rate at its Asset Liability Committee (Alco) meeting in the next few days.
According to Indian Overseas Bank Executive Director A K Bansal, both deposit and advances rates would come down.
Microsoft's next operating system will come in just three different flavours, the company has announced.
For those with Intel based machines, the OS will be available in two versions Windows 8 and Windows 8 Pro.
And for those with devices, largely tablets, powered by ARM designed chips there will be a Windows RT version.
Microsoft wants to simplify how it markets Windows 8, which is expected to launch in autumn 2012.
The complex flavours of past Windows from basic to home, premium to ultimate have become something of a joke among tech experts.
Microsoft has called Windows 8 the most significant redesign of the Windows interface since its groundbreaking Windows 95 OS.
The ARM version of the OS is the newest edition and reflects Microsoft's desire to unify the engine known for running desktop computers with that for tablets and smartphones. Windows RT will sit alongside Apple's iOS and Google's Android operating systems.