The Diwali lights will undoubtedly be shining even brighter in Bangalore next week with the news that mid-tier offshore IT services firm, MindTree, broke the $100m quarterly revenue barrier for the first time. Headline revenues in Q2 (to 30th Sept.) grew by 23% yoy (9.5% qoq) to $101m, a similar rate to most peers. Good news on operating margins as well, surging nearly 5 points qoq to 14.3%, putting MindTree's profitability dead in line with 10-fold larger HCL (see HCL tops a billion!). MindTree’s revenues in Europe grew by 24% to $26m.
The European ‘majors’ start their Q3 reporting season next week. With India-based players so far reporting double-digit yoy growth in Europe (bar Infosys – see Infosys adjusts growth outlook as Europe struggles), it will surely become even more obvious which way market share is shifting.