Result Analysis: Mindtree Ltd. Result Update Q3FY22


Particulars (In Rs. Cr.) Q3FY22 Q2FY22 Q3FY21 QoQ % YoY%
Revenue from Operations 2,750 2,586 2,024 6.33% 35.89%
Other Income 71 75 61.6 -5.35% 14.94%
Total Income 2,821 2,661 2,085 6.01% 35.27%
Employee Benefit Expenses 1,646 1,564 1,261 5.20% 30.52%
Employee benefit Expenses as % of Sales 59.85% 60.49% 62.31% -1.06% -3.95%
EBIT 529 470 396 12.60% 33.49%
EBIT Margin 19.23% 18.16% 19.58% 5.90% -1.76%
Profit After Tax 437 399 327 9.68% 34.00%
PATM (%) 15.51% 14.99% 15.66% 3.46% -0.94%
EPS (in Rs. ) 26.55 24.21 19.82 9.67% 33.96%
Segment Revenue Q3FY22 Q2FY22 Q3FY21      QoQ %          YoY%
Retail, CPG and Manufacturing 667 657 433 1.64% 54.10%
Banking, Financial Services and Insurance 481 454 396 5.93% 21.46%
Communication, Media and Technology 1,186 1,100 936 7.84% 26.65%
Travel, Transportation and Hospitality 380 349 239 9.03% 58.90%
Healthcare 36 28 19 30.43% 85.57%

Result Highlight: 

  • Mindtree Consolidated Revenue rose 6.3% QoQ and 35.9% YoY to Rs 2750 crore – in line with the estimates of Rs. 2760 Crore. In Constant Currency terms revenue grew by 5.2% QoQ.

  • Operating Profit Margin beats the estimates of 18.1% at 19.2% expended from 18.2% from last quarter helped by lower employed expenses as % of sales

  • Net profit rose 34% YoY to Rs 437 crore for the December quarter compared with Rs 327 crore in the same quarter last year.

  • Attrition rate on TTM basis rose to 21.9% increased from 17.7% in Q2FY22.

  • Communication, Media and Technology major revenue contributor to the revenue of the company grew 7.8% sequentially. Travel, Transportation and Hospitality and healthcare showed strong growth sequentially and on year-on- year basis.

  • North America the major revenue contributor to the revenue of the company with 73% of total revenue in Q3FY22, grew 5.1% sequentially and 26.6% on year-on-year basis. UK and Ireland revenue declined by 7.1% sequentially.

  • New deal wins were $358 million registered growth of 14.7% from the same quarter last year. Year-to-date deal TCV crossed $1.2 billion.

  • Added 8 new clients this quarter with active client stood at 258 at the end of December, 2021

Management commentary: 

  • Commenting on the Q3 performance, Debashis Chatterjee, Chief Executive Officer and Managing Director, said: “Our sequential revenue growth of 5.2% in constant currency reflects the strength of our strategy, execution, partnerships, and continued investments in our business and people. Our order book for the quarter was $358 million, up 14.6% year-over-year, and our year-to-date deal TCV crossed $1.2 billion. Our EBITDA margin for the quarter was 21.5%. In the first nine months alone, our PAT of $158.8 million surpassed PAT of the preceding fiscal year. The passion of our future-ready talent and the trust of our clients position us well in our endeavor to continue to deliver profitable industry-leading growth in the coming years.”

  • Most deal wins are of digital transformation nature which are short cycled and eventually will transforms into multi- year deals.


Mindtree reported big estimates beat on margin front. Ahead of its EBITDA margin guidance of 20% it reported EBITDA margin of 21.5% helped by lower employee expenses. Reported healthy deal TCV of USD $358 mn vs $360 mn in Q2FY22 and $312 mn in Q3FY21. Management outlook on growth continues positives as the company expects EBITDA Margin to stay above 20% in coming quarters. The company has won 10 Cloud deals this quarter on back of expanded relationship with one of leading hyper-scalar. At the CMP of Rs. 4760, Mindtree is trading at PE multiple of 52.4x. Valuing the company at 41.7x FY23E EPS, we recommend buy on Mindtree at CMP of Rs. 4760 for the Target Price of Rs.5250.

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