Mindtree has informed the stock exchanges that it expects high single-digit revenue decline (USD, QoQ) in 1QFY21, driven by near-term headwinds in the Travel and Hospitality vertical (TTH, ~16% of sales). While the update is procedural best practice, we have factored in sequential decline of similar Mindtree has further highlighted that it is currently witnessing high demand in Communications, Media and Technology (CMT) and CPG verticals. The company expects sequential growth in 2QFY21 and top line recovery in 2HFY21. It foresees demand for Digital and Transformational services as clients invest in data, cloud- enabled solutions, customer centric and end-user Despite near-term growth challenges, Mindtree expects margins to remain stable in 1QFY21 at 4QFY20 levels. salary hike deferral, optimization in sub-contractor and discretionary expenses) seem to have driven this margin stability notwithstanding the expected revenue decline. The stock is currently trading at 18x on depressed FY21E EPS.