Mindtree shares zoom post healthy Q1; management confident of double-digit growth

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Shares of Mindtree on Wednesday zoomed over 9 percent after the IT firm posted a 61.2 per cent jump in its consolidated net profit for the June quarter and exuded confidence in logging a double-digit revenue growth in FY'22. The stock jumped 9.22 per cent to Rs 2,725 it's 52-week high at the BSE. Mindtree also clocked in its highest ever deal wins at $504 million in the reported quarter. The demand pipeline is robust with a healthy order book, Debashis Chatterjee, the MD and CEO of the company in an interview with CNBC-TV18.

Shares of Mindtree on Wednesday zoomed over 9 percent after the IT firm posted a 61.2 per cent jump in its consolidated net profit for the June quarter and exuded confidence in logging a double-digit revenue growth in FY'22. The stock jumped 9.22 per cent to Rs 2,725 it's 52-week high at the BSE.
Mindtree also clocked in its highest ever deal wins at $504 million in the reported quarter.
The demand pipeline is robust with a healthy order book, Debashis Chatterjee, the MD and CEO of the company in an interview with CNBC-TV18.
"We had some renewals but as you know when we do the renewals it also increases the scope of the opportunities that we have been working with our clients. For many of these deals are multiyear opportunities so that is good for us,” he added.
On FY22 growth Chatterjee said that the first quarter is a good indicator in terms of how the year will potentially look like.
"We are very confident of our double-digit growth and we also said that we should be able to do our industry-leading double-digit growth,” he added.
The margins improvement is due to planned work in the last two years in terms of effective management, according to the CEO.
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"Quarter-to-quarter we will have certain headwinds but one of the things that we have been doing is given the demand scenario also doing a lot of investments in terms of hiring and ensuring that we are building some capabilities which are specific to the clients, so the opportunity that we are seeing right now is not necessarily just a cost opportunity but also revenue play,” Chaterjee elaborated.
The company is planning on undertaking wage hikes in the ongoing quarter (Q2FY22).
"It will be inline with the overall industry. In terms of attrition, it seems like an industry phenomenon but having said that there are enough ways to manage the attrition,” he said.
The BFSI segment has gone through some consolidation in the last fiscal but Mindtree is confident of greener pastures.
"These are the headwinds that you see from time to time. Overall at this point in time, we are confident that BFSI will continue to grow,” Chatterjee said.
“As far as travel is concerned, domestic travel has opened up in the US but that is more leisure not really business travel so we are still watching it very cautiously,” he added.
 For full management commentary, watch the video.

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