MindTree planning acquisitions: Soota

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New Delhi, Nov 2:  "MindTree Consulting Ltd is scouting for foreign buys, especially in Europe", its chairman and managing director Ashok Soota said on Thursday.

"We will use acquisitions more than we did in the past. Up till now only 9 percent of our growth comes from acquisitions,"  Soota told to the sources on the sidelines of a conference.

"One of the purposes for which we did the public issue was to do acquisitions," he said. MindTree was listed on Bombay Stock Exchange on March 7.

The software firm is looking at entities which will either give it a presence in new geographies or add to its skills, he said. The firm gets 65 per cent of its business from the US and 75 per cent of its total billing is in dollars.

The company expects 2007/08 revenue of $178-$180 million and profit of $22.5-$22.6 million.

Every one per cent rise in the rupee against the dollar shaves off 0.4 per cent of the firm's profit-after-tax, he said.

"We have not lost business because of the US subprime crisis. But I don't rule out that new business coming in will slowdown a little bit," he added.

MindTree shares closed down 2.99 per cent at Rs 458 in afternoon trade in a Mumbai market that ended down 0.57 per cent.

 

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