CFO's Message 2014-15

Dear Shareholders,

Your company continues to maintain its growth momentum and has posted industry-leading revenue and bottom-line performance in FY2014-15.

Highlights for FY2014-15

Our revenues were RS. 35,619 million ($583.8 million), which was a 17.51% growth over the previous year in INR terms and 16.4% growth in USD terms. Our net profits grew 19% (in INR terms) and 17.9% (in USD terms) over the previous year due to our efforts to drive higher operational efficiencies and aided by favorable currency movements. We have a strong balance sheet with cash and liquid investments of RS. 9,106 million. Our ROCE was 37.8%. We ended the year with 14,202 Mindtree Minds. During the year, we opened new offices in Bhubaneshwar and Washington. We completed the acquisition of Discoverture Solutions L.L.C. which strengthens our capability to serve clients in the Insurance industry. This contributed $2.7 million in revenues and $360K in net profits to us for the year.

Though we grew faster than the overall industry once again this year, we had some challenges. The year started on a good note, but we faced some headwinds during the second half. The fundamentals of our business remain strong, and therefore we are confident that we will continue to outpace the industry in the years ahead.

We continued our focus and efforts to reward shareholders through various measures such as increasing dividends, moving to a quarterly dividend payment schedule and our first bonus issue since our IPO in 2007. Our strong financial performance and shareholder-friendly practices, as well as our good governance practices, made us one of the best-performing stocks on the Indian stock market in FY2014-15.

We are happy to present our Business Responsibility Report explaining our approach to adopting responsible business practices. This report adheres to the Global Reporting Initiative framework and is being disclosed voluntarily, keeping in line with our objectives of recognizing our obligations to society and continually making more information available to you to understand our business. The Business Responsibility Report and other relevant sections of this Annual Report also cover the work we do through the Mindtree Foundation and other channels to give back to society. While the financial information contained in the report captures the financial movements, we have covered other relevant information to help explain our business better through the Management Discussion and Analysis, Risk Report, IFRS financials and other sections of this Annual Report.

I would like to draw your attention to an important update. BSR & Co. LLP and its associated firms (BSR) have been our auditors since our inception. The new Companies Act makes it mandatory for companies to rotate auditors periodically. Though we have a few more years before the change is necessary, as a voluntary measure your Board recommends to you that we appoint Deloitte Haskins & Sells (Deloitte) as the new statutory auditors of your company. Deloitte is one of the world's leading audit firms and highly reputed, and it audits many of India's best-known companies. We are confident that Deloitte would help build on the strong reporting and governance platforms we have in place. Personally, and on behalf of the Board and shareholders, I would like to take this occasion to express my heartfelt thanks to Jamil Khatri, Supreet Sachdev and the entire BSR team for their invaluable support over the last 15 years.

As our business grows, we are continuing to invest in creating physical infrastructure that is innovative in design, is ecologically friendly and fosters collaboration. Our largest investment to date is Mindtree Kalinga—our new Global Learning & Delivery Center in Bhubaneshwar. The center became operational in March 2015 and is teeming with activity. As we achieve the objectives we set for ourselves at Mindtree Kalinga, it will be a game-changer for us over the medium term. In addition to our efforts at Mindtree Kalinga, we implemented many other measures to strengthen the capabilities of our Mindtree Minds, which will help us deliver greater success to our clients.

Our priorities for FY2015-16

As you will see in this report, digital technologies are creating fundamental shifts in how businesses and consumers interact all over the world. We are in the middle of this revolution and actively partnering with our clients on their mission-critical digital transformation initiatives. The "Digital is real" mantra applies equally to your company. We have rolled out some of the best technology tools to foster collaboration and drive productivity among our teams. Many of our internal applications are mobile-enabled to service a workforce that is constantly on the move. Our systems are designed to appeal to Generation Y using best practices from popular social media websites.

We are fully focused on becoming the preeminent digital transformation partner for our clients, and on delivering high customer satisfaction through engaged Mindtree Minds who are experts in their respective fields. We will nonetheless continue to be prudent and use capital and other resources efficiently to achieve our objectives.

Corporate governance

Our good governance practices have endeared us to all our stakeholders. We rededicate ourselves to being the stewards of the business on your behalf, always keeping your interests in mind and doing our best to meet and exceed the trust and confidence you have put in us.

Outlook for FY2015-16

In the year ahead, we see the business environment filled with exciting opportunities and challenges. Competitive intensity for these opportunities is increasing. However, we believe the passion and expertise of Mindtree Minds, along with your support, will help us continue our strong growth trajectory even during these uncertain times. In light of our confidence about our financial performance, we expect to continue to maintain a good dividend payout ratio.

In summary, we delivered on the commitments we made for FY2014-15 and are embarking on important strategic initiatives to build a valuable business through passionate teams working closely to make our customers successful in this dynamic world. The changes we are driving will take time to take root, with the additional challenge that the pace will be determined by the external environment. We believe we have the strength and resilience to weather these challenges.

When this letter reaches you, I will have given up my role as your Chief Financial Officer and assumed my new role of leading the Enterprise Service Lines and Key Accounts Group, along with oversight of our European operations. Inevitably, this brings mixed feelings-nostalgia for what I am leaving behind, as well as excitement about the opportunities to make a difference in my new role. Jagannathan Chakravarthi, who was your Financial Controller until now, ably takes over from me as the new Chief Financial Officer. I am fully confident that he will take the finance function to greater heights because he has the required skills, has experience in handling both scale and complexity, and is fully aligned with Mindtree’s core values.

Our achievements so far have only been possible due to the outstanding teams at your company that I am proud to lead. They continuously challenge themselves to innovate and to deliver the best results for all our stakeholders.

Finally, I thank all our stakeholders for your goodwill and support.

Sincerely,

Rostow Ravanan
Chief Financial Officer