ICICI Securities: Mindtree’s Q2 Margin Has Not Yet Plateaued

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.While revenue in this quarter is behind estimates, margin expansion and outlook surprised the street.Mindtree Ltd. expects to keep its margins stable despite impending wage hikes, which would be an impressive achievement.We reckon steady state Ebit/profit after tax margins of 17.5%/14.3% by FY23E, by when cost structure should converge with that of Larsen and Toubro Infotech Ltd.1. Increasing share of fixed price projects,2. focus on tail account rationalisation and3. communication, media and technology led growth should drive further margin expansion.Slight decline in top account (1% QoQ, U.S. dollar) in Q2 FY21 was understandable given the pandemic-led spike in Q1 FY21..Click on the attachment to read the full report:.DISCLAIMERThis 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 brokerage 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.

ICICI Securities: Mindtree’s Q2 Margin Has Not Yet Plateaued

ICICI Securities: Mindtree’s Q2 Margin Has Not Yet Plateaued

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