Mindtree Q3 Review - Good Performance, But Valuations Remains Rich: Motilal Oswal
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Mindtree Ltd. reported a revenue of $366 million (up 5.2% QoQ constant currency) in Q3 FY22, above our estimate of 3.5% QoQ growth, driven by broad based growth across verticals and regions.
Deal total contract value in Q3 FY22 was stable at $358 million, with a good mix of annuity and transformational deals. The management reiterated that the demand environment continues to remain strong, and expects industry leading growth in FY22.
Ebitda margin rose an impressive 100 basis points QoQ (above our expectation of a 30 bps increase) in Q3 FY22 on lower subcontracting spends and control on operational costs. Mindtree achieved this despite continued pressure on wages and elevated attrition (21.9%, up 420 bps QoQ).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.