Message from CFO
$715.2 Million Revenue
$126.7 Million Operating Profits
22.5% Y on Y Revenue Growth in USD
16,623 Mindtree Minds
348 Active Clients
Your company continues its efforts to achieve industry-leading growth, as reflected in Mindtree’s financial performance for FY 2015–16.
Highlights of FY 2015–16
Our revenue grew to ₹ 46,896 million (USD 715.2 million) in FY 16, up from ₹ 35,619 million (USD 583.8 million) in FY 15, which is 31.7% growth in INR terms and 22.5% in USD terms. Our net profits grew by 12.5% in FY 16 in INR terms and 4.7% in USD terms over the previous year due to volume growth in revenues and aided by favorable currency movements. Our return on capital employed (ROCE) remained strong at 34.9%, and our earnings per share (EPS) grew to ₹ 35.89 in FY 16 from ₹ 31.94 in FY 15.
We rewarded our shareholders through increased dividend payouts in line with increased profits, and we continued our quarterly dividend payment schedule. We also made a bonus issue this year within 18 months of the previous bonus issue. We will continue to work toward creating value for all our stakeholders through strong financial performance.
For the third consecutive year, Mindtree grew faster than the industry. Even though our business was affected by a few project delays in couple of business verticals towards the end of the fiscal year, the fundamentals of our business remain strong, and we are confident of achieving industry-leading growth in the coming years.
We have a strong balance sheet and the liquidity to make the necessary organic and inorganic investments to sustain the growth. During FY 16, in line with our commitment to “make digital real” for our customers, we bolstered our digital business by acquiring Bluefin Solutions, Relational Solutions and Magnet 360. These acquisitions contributed revenue of ₹ 2,740 million (USD 41.2 million) and a net profit of ₹ 148 million (USD 2.2 million) during the fiscal year.
We continue to invest in facilities, IT infrastructure and security with efficient design and compliance with the global standards on sustainability. In FY 15, we invested in Mindtree Kalinga, our global learning and delivery center. This facility is now fully operational and we have started imparting training to Mindtree Minds. Kalinga is just one of the several initiatives designed to develop the potential of young Mindtree Minds and make your company the best possible place to establish and grow a career.
We continue to give back to the society through Mindtree Foundation and various other channels. Various sections of this annual report highlight the projects and activities taken up by Mindtree in our effort to be responsible corporate citizens. We have voluntarily adopted the Global Reporting Initiative (GRI 3.1) framework for our sustainability report, one of the world’s highest standards in disclosure to explain our approach of adopting responsible business practices and in line with our objective of making more information available to you.
We remain dedicated to enhancing transparency and disclosure to shareholders through various additional disclosures such as sustainability report, risk report, management discussion and analysis and IFRS financials.
Outlook and priorities for FY 2016–17
In the last few years, our rate of growth has consistently been faster than that of our industry. We expect to continue this momentum for FY 17. Digital is gaining traction and continues to be one of our major growth drivers, with personalization of digital solutions being our key strategic focus for FY 17. We will continue our focus on account mining and strive to exceed our own company growth rate in each of our top 30 accounts. We will also continue to focus on delivery and operational efficiencies to improve our margins.
At Mindtree, people are our core strength. Leadership development and succession planning are critical for the growth of a global enterprise. We are committed to developing Mindtree Minds through providing ample training and growth opportunities and planning for our future leaders in a sustainable way.
We believe in transparency and maintaining the trust of our stakeholders through strong corporate governance, as demonstrated by the following:
- In FY 2010–11, we published audited quarterly financial statements.
- In FY 2011–12, we published unaudited IFRS financial statements.
- In FY 2015–16, we published audited IFRS financial statements.
- The first audited Ind AS–compliant (a new IFRS equivalent in India) financial statements will be published in FY 2016–17.
We take pride in our standards of corporate governance and will continue to uphold them to maintain your confidence and trust in us.
I would like to personally thank our outstanding Finance, Procurement, Secretarial, People Shared Services, Travel and Immigration teams, which I am proud to lead. Their dedication and mantra of continuous improvement delivers consistently outstanding results for Mindtree and our stakeholders.
I feel honored to have taken over the role of Chief Financial Officer as of April 2015, and I pledge to be an effective partner to our business leaders. I’m grateful to all our investors for your trust. Your support helps Mindtree become a stronger company every day.
Chief Financial Officer