FSA ASSIGNMENT

COMPANY ANALYSIS

Submitted to, Submitted by,

Prof. Sunil Kumar A.L Anoon P Basil Raj

1220210

3 MBA-C

Company Analysis

Profile

Mindtree Ltd. was incorporated as MindTree Consulting Pvt. Ltd. on 5 August 1999. It was converted into a public limited company on 27 September 2006. The company's name was changed to Mindtree Ltd. on 6 November 2006 after receiving a fresh certificate of incorporation from the Registrar of Companies. The company's registered office is at Global Village in Mysore Road, Bangalore, Karnataka. The equity shares of the company was listed on the Bombay Stock Exchange (BSE) and on National Stock Exchange (NSE) on 7 March 2007. The company was promoted by ten professionals, Ashok Soota, Subroto Bagchi, N Krishnakumar, S Janakiraman, N S Parthasarathy, Rostow Ravanan, Kalyan Kumar Banerjee, Anjan Lahiri, Scott Staples and Kamran Ozair. N Krishnakumar is the Managing Director & CEO, Subroto Bagchi and S Janakiraman are Executive Directors in the company. Ashok Soota exited from the company's Board of Directors on 31 March 2011. The company provides information technology (IT) and research & development (R&D) services. It delivers business and technology solutions through software development. The organisation functions through two different divisions - IT Services and R&D services. IT jobs include services like IT strategic consulting, application development, data warehousing and business intelligence, application maintenance, package implementation and application product engineering services. R&D services operates through two divisions - engineering & research. Engineering division provides product realisation services to technology and product firms including product architecture and product design, product re-engineering and product assurance. The research division conceives and develops intellectual property primarily in short range wireless communication segment and licences & customises such intellectual property. The engineering business unit serves clients in industries like consumer appliances, storage, computing systems, communications infrastructure and communications terminals. IT services and R&D services both follow two practices like testing practice and infrastructure management and technical support (IMTS). Testing provides services like testing of CoE, test consulting, test automation, performance test and specialised testing. Under IMTS services offered are consulting &

implementation, management services, security services and technical support.

Ownership Pattern

Individuals & HUF Central & State Govt. Corporate Bodies

FIs & Banks Others Institutions

Mutual Funds/UTI Banks, FIs,Insurance Cos. Insurance Companies

Financial Institutions & Banks Central & State Government FIIs

Venture Capital Funds Foreign Venture Capital Others

Non-institutions Corporate Bodies Individuals

Nominal invest. Upto Rs. 1 lakh Nominal invest. Over Rs. 1 lakh Others

Ownership of Equity Shares & Number of Owners

Mindtree Ltd.

Sep-12Shares Held

Demat shares HoldersPledged shares

  (Nos.) (% of Total) (Nos.) (Nos.) (Nos.)(% of Holding)

Total Shares 40,924,556 100 40,788,522 53,320    

Promoters 7,969,408 19.47 7,969,408 9    

Indian 6,523,745 15.94 6,523,745 8    

Individuals & HUF 6,291,245 15.37 6,291,245 6    

Central & State Govt.            

Corporate Bodies            

FIs & Banks            

Others 232,500 0.57 232,500 2    

Foreign 1,445,663 3.53 1,445,663 1    

Individuals(NRIs)            

Corporate Bodies 1,445,663 3.53 1,445,663 1    

Institutions            

Others            

Persons acting in concert            

Non-promoters 32,955,148 80.53 32,819,114 53,311    

Institutions 13,510,874 33.01 13,510,874 105    

Mutual Funds/UTI 3,482,960 8.51 3,482,960 31    

Banks, FIs,Insurance Cos. 514,679 1.26 514,679 5    

Insurance Companies            

Financial Institutions & Banks 514,679 1.26 514,679 5    

Central & State Government            

FIIs 9,513,235 23.25 9,513,235 69    

Venture Capital Funds            

Foreign Venture Capital            

Others            

Non-institutions 19,444,274 47.51 19,308,240 53,206    

Corporate Bodies 12,340,013 30.15 12,340,013 635    

Individuals 6,438,221 15.73 6,330,566 51,690    

Nominal invest. upto Rs. 1 lakh 3,421,895 8.36 3,327,465 51,632    

Nominal invest. over Rs. 1 lakh 3,016,326 7.37 3,003,101 58    

Others 666,040 1.62 637,661 881    

Shares held by Custodians            

Capital History Summary

Mindtree Ltd.

          (Rs. Million)  

Issue date Issue type

Security type

Capital targeted to be raised

Securities issued(nos.)

Outstanding shares(nos.)

Outstanding paid-up capital

16-Oct-12 ESOP

Equity shares 19.5 56,312 40,980,868 409.8  

17-Sep-12 ESOP

Equity shares 29.1 85,674 40,924,556 409.2  

14-Aug-12 ESOP

Equity shares 25.9 88,252 40,838,882 408.3  

17-Jul-12 ESOP

Equity shares 17.7 52,665 40,750,630 407.5  

15-Jun-12 ESOP

Equity shares 15.2 45,239 40,697,965 406.9  

15-May-12 ESOP

Equity shares 26.6 79,333 40,652,726 406.5  

17-Apr-12 ESOP

Equity shares 8.2 29,470 40,573,393 405.7  

16-Mar-12 ESOP

Equity shares 8.3 29,799 40,543,923 405.4  

16-Feb-12 ESOP

Equity shares 6 19,035 40,514,124 405.1  

16-Jan-12 ESOP

Equity shares 3 11,742 40,495,089 404.9  

16-Dec-11 ESOP

Equity shares 4.4 15,245 40,483,347 404.8  

15-Nov-11 ESOP

Equity shares 44.1 147,352 40,468,102 404.6  

17-Oct-11 ESOP

Equity shares 14.9 53,194 40,320,750 403.2  

15-Sep-11 ESOP

Equity shares 11.3 38,207 40,267,556 402.6  

16-Aug-11 ESOP

Equity shares 21.4 80,041 40,229,349 402.2  

15-Jul-11 ESOP

Equity shares 5.8 21,693 40,149,308 401.4  

15-Jun-11 ESOP

Equity shares 6.9 21,954 40,127,615 401.2  

16-May-11 ESOP

Equity shares 6.5 27,207 40,105,661 401  

15-Apr-11 ESOP

Equity shares 11.6 43,267 40,078,454 400.7  

15-Mar-11 ESOP

Equity shares 18.9 73,434 40,035,187 400.3  

15-Feb-11 ESOP

Equity shares 13.7 46,555 39,961,753 399.6  

17-Jan-11 ESOP

Equity shares 10.8 41,037 39,915,198 399.1  

15-Dec-10 ESOP

Equity shares 9.8 43,310 39,874,161 398.7  

10-Dec-10

Post-Amalgamation

Equity shares     39,830,851 398.3  

15-Nov-10 ESOP

Equity shares 7 23,300 39,830,851 398.3  

15-Oct-10 ESOP

Equity shares 8.7 35,226 39,807,551 398  

15-Sep-10 ESOP

Equity shares 9.8 35,492 39,772,325 397.7  

16-Aug-10 ESOP

Equity shares 7.3 30,158 39,736,833 397.3  

Profitability Ratios

 

Mindtree Ltd. Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

Currency: Rs. Million (Non-Annualised)12 mths

12 mths

12 mths

12 mths

12 mths 12 mths

-            

Margins on income            

On total income            

PBDITA as % of total income 19.8 20.4 27.6 24.3 14.4 17

PBT as % of total income 15 14.8 3.2 18.7 9.8 13.4

PAT as % of total income 15.1 13.7 2.9 15.8 7.9 11.2

Cash profit as % of total income 18.4 17.5 7 20.8 12.4 13.3

             

On total income net of P&E            

PAT net of P&E as % of total inc net of P&E 15.1 13.5 2.8 15.6 7.9 11

Cash profit net of P&E as % of total inc net of P&E 18.4 17.6 6.8 20.8 12.4 13.3

             

On sales            

PBDITA net of P&E&OI&FI as % of sales 18.8 17.3 27 19.3 11.8 15.3

             

Returns on investments            

On net worth            

PAT net of P&E as % of net worth 31.9 21.3 5.3 34.7 17.2 24.8

PAT as % of net worth 31.9 21.5 5.6 35.4 17.3 25.2

Cash profit as % of net worth 38.9 27.6 13.4 46.5 27.2 30

             

On capital employed            

PAT net of P&E as % of capital employed 27 19 4.3 30.7 17 23.8

PAT as % of capital employed 27 19.2 4.6 31.3 17.1 24.2

             

On total assets            

PAT net of P&E as % of total assets excl reval 20.7 15.3 3.3 21.4 12.5 18.2

PAT as % of total assets excl reval 20.6 15.5 3.5 21.9 12.5 18.6

             

On GFA            

PBDITA net of P&E&OI&FI as % of GFA excl reval 96.3 52.3 74.4 56.6 35.1 51.3

PAT net of P&E as % of GFA excl reval 78.2 42.6 7.7 48.6 24.2 37.6

PAT as % of GFA excl reval 78.1 43 8.2 49.5 24.3 38.2

             

On NFA            

PBDITA net of P&E&OI&FI as % of NFA excl reval 239.1 86.6 115.3 96.3 64.2 104.8

PAT net of P&E as % of NFA excl reval 194.2 70.5 11.9 82.7 44.2 76.8

PAT as % of NFA excl reval 194.1 71.3 12.6 84.3 44.4 78.1

             

Analysis

The profit of the company has increased about 8 times during the five years. However, the Consulting division contribute only 3.1 per cent to the company's total

revenues. The company's bulk of revenues flow from the software segment, which accounts for over 96 per cent of the company's total sales.

The Shareholding pattern of the company is stable for all the five years. The promoters hold more than 50% of the stock which retains their decision making power.

The plant of the company are located in different regions of India, which maks the company to easily cater the demand in a particular region from the nearest plant.

Recently, V G Sidhartha of Café Coffee Day Acquired 27% in Mindtree Ltd. The Sales has been increased 3 times during the past five years and the Working

Capital has been doubled during the five years.