Mindtree - Strong Q4, Tailwind From Travel Vertical To Boost Growth In FY22: Motilal Oswal

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Motilal Oswal Report

Mindtree Ltd. delivered another strong quarter, with U.S. dollar revenue growth of 5.1% quarter-on-quarter, above our estimate of 4.3%, driven by robust growth outside of the top 10 accounts (+8.6% QoQ U.S. dollar) and end of discounts in the travel and hospitality vertical (+17% QoQ U.S. dollar).

Deal total contract value rose 20% QoQ to $375 million in Q4 FY21 and the management indicated that deal pipeline is at a record high.

It was able to deliver better than expected Ebitda margin in Q4 FY21 (18.6%, down 100 basis points QoQ) as wage hike impact (-240 bps QoQ) was partially compensated by operational efficiency and higher utilisation (84.3%, +120 bps QoQ).

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