Mindtree rolls out salary hikes effective January 2021

For Bengaluru-based mid-tier IT firm Mindtree, recovery from travel and hospitality is a long haul. However, demand from its top client will remain stable as they continue to invest in technology, said its CEO Debashis Chatterjee.

In good news for employees, the company will roll out salary increments for all its employees, effective January 2021.

The company registered $261 million in revenue, up 3.1 percent quarter-on-quarter in Q2 FY21, led by growth in continental Europe, UK and Ireland.

Revenue from travel and hospitality continued to decline and now stands at 8.3 percent from 16.9 percent in the same quarter a year ago. In the June quarter, revenue stood at 8.1 percent.

In its post earnings conference call October 15, Chatterjee said that while domestic travel has started in certain pockets, international travel is yet to recover. “We don’t expect recovery in travel and hospitality in the next several quarters,” he said, adding that there are green shoots in the sector, but pace of recovery is going to be long.

Other sectors like banking and financial services, retail, consumer packaged goods and manufacturing have grown on a QoQ basis.

The company added eight new clients in Q2.  However, revenue from its top clients declined on a sequential basis.

In Q1, it saw significant uptick in revenue contribution from its top client, including Microsoft.

For instance, revenue from its top client Microsoft declined to 28.9 percent from 30.1 percent in Q1. However, the same was up from 20.6 percent in the same period last fiscal.

Similar decline could be witnessed in its top 10 accounts. Revenue contribution from top five and 10 clients declined 2.3 percent and 2.6 percent, respectively.

Chatterjee explained that in the June quarter significant ramp up happened at the back of COVID-19 for the company’s top customers. This led to spurt in demand and the company had to ramp up its supply side to cater to the same.

The company now expects demand to stabilise at the level it is now, with top clients continuing to spend on technology.