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Mindtree Q2FY2020 earnings today: Here’s what to expect

Updated : October 16, 2019 08:54 AM IST

Mindtree's Q2 FY2020 earnings will be released on Wednesday and there is expectation of around 2 percent dollar revenue growth. In constant currency terms, the IT major should see a growth of 2.5 percent, indicating an improvement over the 1.1 percent growth it reported in the previous quarter.

Mindtree's margins are also likely to improve after it hit an all-time low of 6.4 percent in the prior quarter on account of a couple of one-time expenses it paid out to its employees. The margins are expected to bounce back closer to the 10 percent mark — which will drive a big jump in profitability.

In its guidance for FY20 Mindtree had said that it was likely to see an above industry growth guidance and a small improvement in margins. However, that guidance was torn down in the June quarter.

The key things to track will be the priorities of the new CEO Debashis Chatterjee, who took charge about two months ago. The total contract value (TCV) of deal wins for the company were at all-time high in the June quarter. It will want to continue at the same rate.
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