Mindtree Q2 Review - Stellar Performance, Outlook, But Valuations Rich: Motilal Oswal
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Motilal Oswal Report
Mindtree Ltd. delivered another excellent quarter, with a revenue of $350 million (up 12.8% QoQ, estimate: 8.3%), driven by broad based growth across verticals and regions.
The only pocket of weakness in Q2 FY22 was in its top client (flat QoQ), which now accounts for 24% of revenue.
Deal total contract value stood at $360 million, with a good mix of annuity and transformational deals.
Ebitda margin rose 20 bps sequentially, despite the impact from a wage hike.
Margin in Q2 FY22 was aided by operating leverage and currency benefits, which was partially offset by a wage hike.
Mindtree added ~2000 freshers in H2 FY22, which is expected to continue.
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