MindTree eyes acquisitions to boost growth

Software firm MindTree Consulting Ltd is scouting for foreign buys, especially in Europe, its chairman and managing director 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," Ashok Soota told Reuters 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 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.

MindTree is keeping unchanged its full-year outlook, despite second-quarter results that beat analysts' estimates, citing the time required to replace completed projects, the US subprime crisis and the rising rupee.

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 that (subprime crisis). But I don't rule out that new business coming in will slowdown a little bit," he said.

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.