First Cut of Mindtree Q1FY23 Results - Prabhudas Lilladher

Ms. Aditi Patil - Research Associate at Prabhudas Lilladher.

Mindtree Q1FY23 Results First Cut - Strong performance on margins and deal wins

In-line revenue: Revenue at $399.3 mn, 4% QoQ USD terms (PLe: 4%, Cons: 4%), 5.5% QoQ CC (PLe: 5%, Cons: 5.5%),

Growth led by TTH 11.2% QoQ USD, BFSI 6.5% QoQ USD and CMT +5.9% QoQ USD. RCM declined by 8.7% QoQ USD. Newly incubated Healthcare vertical grew +43.5% QoQ USD.

North America grew by 8.5% QoQ USD. UK declined 18.7% QoQ USD and Continental Europe declined by 9.2% QoQ USD. APAC and Middle East grew by 2.6% QoQ USD.

Strong deal TCV MTCL reported record high deal TCV of USD $570 mn, 13% YoY, 46% QoQ.

Beat in margins: EBIT margin came at 19.2%, 30bps QoQ, (Ple: 18%, Cons: 18%).

Utilization declined to 81.2%, -190bps QoQ. Offshore effort mix increased by 30bps QoQ to 86.6%

Hiring momentum continued with net addition of 2,384 employees, +7% QoQ. (vs average addition of ~2.8K per quarter in FY22)

Overview: Performance is good on all fronts. Strong deal wins, healthy hiring momentum and strong revenue growth despite weakness in RCM point towards strong near term demand. Impressed with margin beat amidst high supply side pressures for the industry.

Shares of MindTree Limited was last trading in BSE at Rs. 2899.35 as compared to the previous close of Rs. 2855.45. The total number of shares traded during the day was 53379 in over 6030 trades.

The stock hit an intraday high of Rs. 2915.00 and intraday low of 2853.10. The net turnover during the day was Rs. 154117992.00.

Source : Equity Bulls

Keywords

MindTree INE018I01017 Q1FY23Results FirstCut PrabhudasLilladher