Shares of Mindtree soared 3% after the IT consultancy company's reported revenue in USD terms came in at $251.5mn, up 2.1% qoq.
Revenue in Indian rupee terms grew 1.8% qoq to Rs1,787cr, lower than the median consensus estimate of Rs1,808cr. EBIT stood at Rs242cr, up 5.5% qoq, higher than the median consensus estimate of Rs240cr. EBIT margin expanded 48bps qoq to 13.6%.
The company’s PAT in the quarter declined 7.3% qoq to Rs191cr, higher than the median consensus estimate of Rs190cr.
The company added 23 new clients during the quarter. Clients under all buckets, except the $1mn bucket, remain constant, while there were five clients added in $1mn bucket, thus taking the total count to 116.
The growth in top 5 clients is encouraging and the growth in top 2-20 clients, led by wallet share gains, should lead to strong growth rates.
Moreover, there is enough scope to gain further wallet share from its top client as there are other multiple revenue channels within this client. Also, it is well-placed in terms of its digital competencies which provides support to our assumption that it should be the key contestant in winning larger digital deals.
Mindtree Ltd share price is currently at Rs868, up Rs26.15, or 3.11%, from its previous close of Rs841.85 on the BSE. The scrip opened at Rs843 and has touched a high and low of Rs872.95 and Rs821.45, respectively.
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