You are not logged in and only seeing 7 days of articles. Please sign up or login to view more
Thursday 15 October 2020

European rebound helps Mindtree turn the corner

LogoA 21% qoq increase in Mindtree’s European revenues not only largely cancelled out the Q121 top line plunge in this region (see here), but also underpinned the firm-wide second quarter sequential revenue increase of 3.1%. Turnover for the three months to 30 September at the Bangalore-based mid-tier offshore services supplier was, nevertheless, down 3.1% yoy to $261m.

Encouraging news was also to be found on the bottom line. A reduction of a third in SG&A costs compared to the same period in the prior year pushed, by our calculation, Q221 operating profit up nearly 80% yoy to $45.2m. Operating margin improved sequentially by 360 bps to 17.3%.

All four of Mindtree’s target industry verticals – BFSI, Communications, Technology & Media, Travel & Hospitality and Retail, CPG & Manufacturing – returned to a positive growth trajectory in the second quarter. The latter displayed the strongest recovery and accounted for about half of the company’s qoq revenue increase.

Two months ago, we spoke to the recently appointed President of Global Markets at Mindtree, Venu Lambu. During our conversation he spelled out the 4x4x4 strategy which aims to reposition the company from a service provider with deep technical skills to becoming a business transformation partner by 2024 (see here). He believes that the clarity of direction coupled with the strong sense of corporate pride common to the firm’s 21,000 employees will drive the realisation of the Mindtree 2.0 vision. These latest results would suggest that the company has at least begun to head in the right direction.

Posted by: Duncan Aitchison

Tags: results   offshore   systemsintegration   digital  

Twitter   Facebook   LinkedIn   Email article link

© TechMarketView LLP 2007-2020: Unauthorised reproduction prohibited see full Terms and Conditions.