Mindtree - Q1FY22 Result Update - YES SECURITIES

Mindtree - Q1FY22 Result Report (Rating: ADD, TP: Rs2,735, Upside: 9.6%)

- Revenue growth was above estimate- Delivered strong performance as revenue grew 7.7% QoQ to $310.5 mn. In INR terms, growth was 8.6% QoQ led by INR depreciation. The growth was broadbased and aided by traction in travel segment and North America market.

- EBIT margin declined by 90 bps QoQ to 17.7% which was as per expectation led by higher hiring in the quarter.

- Utilisation decreased by 100 bps QoQ to 83.2% (still strong) led by more hiring in the quarter. Trailing 12 month attrition increased by 160 bps QoQ to 13.7% led by higher demand for talent. Increase in offshoring trend continued during the quarter as offshore effort mix grew 60 bps QoQ to 83.5%.

- It would continue to make investments to boost growth and is expected to post high teen revenue growth for FY22, while maintaining EBITDA margin of 20%+. The stock trades at 25.9x on FY23 earnings. We maintain ADD with target price of Rs 2,735.

Shares of MINDTREE LTD. was last trading in BSE at Rs.2702.15 as compared to the previous close of Rs. 2494.75. The total number of shares traded during the day was 310085 in over 18373 trades.

The stock hit an intraday high of Rs. 2728 and intraday low of 2564.95. The net turnover during the day was Rs. 831986030.

Source : Equity Bulls

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