Mindtree Q1 Review - A Consistent Performer: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Mindtree Ltd. delivered in-line revenue while margin was better than our estimate in Q1, supported by flat sub-contracting. The sequential growth of 5.5% constant currency followed the sixth consecutive quarter of 5% plus sequential growth, supported by broad-based momentum across service lines. Key positives include-consistency in delivering industry-leading growth more than 5% QoQ CC,strong credentials in hi-tech and travel vertical (airlines and hospitality exceeding pre-Covid levels),healthy total contract value bookings with TCV growth of 13% YoY,focus on building full stack services and client rationalisation (focus on 100 accounts that contribute 90% of the total revenue), andstable sub-contracting expenses (9.6% of the revenue in Q1 versus 10.2% in FY22). We expect Mindtree to deliver a high-teens growth compound annual growth rate in FY22-24E, supported by expansion into Continental Europe and core portfolio focus (cross-sell), with predictable margins (management maintained 20% plus Ebitdam outlook)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mindtree Q1 Review - A Consistent Performer: HDFC Securities

Mindtree Q1 Review - A Consistent Performer: HDFC Securities

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