Mindtree Q2 Review - Robust Beat On All Counts; Momentum May Tone Down Hereon: Dolat Capital
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Dolat Capital Report
Mindtree Ltd. reported 13.4% constant currency QoQ growth (our estimate: 6.7%) led by 29% QoQ in retail, consumer packaged goods and manufacturing vertical (peak season led demand).
Operating profit margin improved by 43 basis points QoQ to 18.2% (our estimate: 16.3%) led by growth leverage and pyramid optimisation that negated the entire 130 bps wage hike impact.
Total contract value wins stood at $360 million (down 28.6% QoQ) taking the trailing twelve months TCV growth of 20% at $1.55 billion (TCV growth lagging revenue growth).
However, Mindtree remain confident on sustained traction as expects to benefit from tech spends shifting from ‘efficiency gains to revenue maximisation’ across enterprises.
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