MindTree says FY10 sales growth 'challenging'

BANGALORE (Reuters) - MindTree Ltd expects revenue growth in 2009/10 to be "challenging," in view of the global economic meltdown and financial sector turmoil, its chief executive officer said on Wednesday.

"We see lot more caution in the market. Decisions are getting postponed," N. Krishnakumar, told reporters on the sidelines of a conference.

"Certainly, the next year in terms of growth outlook I would say is going to be lot more challenging than even the current year," he said.

However, he refused to comment if the company would revise or meet its revenue guidance for the year to March 2009.

Last month, the company, which offers software and research and development services, said it maintained its revenue guidance for the current year at $228 million - $238 million.

India's export-driven software service firms, used to a scorching pace of growth, have been badly hit by a slowdown in the United States, which contributes more than half their revenue, and the spreading global financial turmoil.

Krishnakumar said the Bangalore-based company was seeing some delays in signing new outsourcing projects as its clients become more cautious about investments in a tough global economic environment, but the pricing environment was stable.

"Certainly delays are happening, no cancellations," he said. "What we do is very core to their business, so it's not that people can just decide one day that they will knock off what they are doing."

Shares in MindTree were trading down 0.8 percent at 243 rupees in a firm Mumbai market.