MindTree Ltd.

NSE: MINDTREE | BSE: 532819 | ISIN: INE018I01017 | Industry: IT Consulting & Software
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MindTree Ltd.
MindTree Ltd.
17 Jan 2018
Motilal Oswal
3Q revenue growth of 3.8% QoQ exceeded our estimate by 130bp. Ramp-up in several engagements led to 8.3% QoQ growth in top customers, contributing 90% of incremental dollars. Continued strength in deal wins, high visibility in top accounts and a strong exit rate (expectations of continued momentum in 4Q) would ensure acceleration from 8% growth in FY18E to 12.6% in FY19E, without much of an ask (2.6% CQGR in FY19E v/s 3.1% in FY18E). EBITDA margin expanded by 350bp QoQ in 3Q v/s our estimate of +110bp QoQ, primarily led by [1] 5.8% sequential pricing growth, as projects moved from a transition phase to a steady state, [2] SGA optimization and [3] absence of one-time expenses from 2Q. PAT at INR1.4b was higher by 13.5% QoQ and beat estimate by 33%, primarily led by operational beat and one-time tax reversal of INR249m.
BOB Capital Markets Ltd. downgraded MindTree Ltd. to Sell with a price target of 3837.0 on 24 Apr, 2025.
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