Mindtree Q1 Review - Weaker Quality Revenue Growth: ICICI Securities

Mindtree Campus. (Source: BloombergQuint)

Mindtree Q1 Review - Weaker Quality Revenue Growth: ICICI Securities

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.

ICICI Securities Report

Mindtree Ltd.'s revenue growth in Q1 FY22 was largely in-line with our estimates. However, the quality of growth was weaker than usual.

The Rs 1.82 billion incremental revenue (QoQ) in June 2021 was accompanied by Rs 1.45 billion rise in receivables.

This was despite a drop in revenue share from fixed price projects (71% to 68%). The normalisation impact of this in subsequent quarters needs to be seen.

Lower data and analytics run-rate (by 90 basis points) led to 60 basis points beat on our Ebit margin expectations.

Management reiterated the outlook of industry leading double-digit growth for FY22.

Click on the attachment to read the full report:

ICICI Securities MindTree Q1FY22 Results Update.pdf

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