Mindtree
In a challenging market, Mindtree posted leading financials during FY 17. A 12% topline growth is indeed impressive. The financial year also marks the completion of 10 years as a listed company post its IPO in 2007. The company’s CEO remarked in the Q4 FY 17 earnings call that, “As a born digital company, our focus has been to help our clients with their technology transformation initiatives both for their run-the-business as well as change-the business programs. One of our largest investments to date is Mindtree Kalinga, our global learning and delivery center, which we believe will be a game changer to build the engineers of tomorrow. More than 2,000 people have graduated from this campus since it was set up in early 2015.”
Vertical wise performance reveals that BFSI was the best performer for Q4 FY 17, which grew by 4.1%; Technology, Media & Services grew 3.9%; Retail, CPG & Manufacturing was the only vertical which had a slight decline. For the full year, Technology, Media & Services was the best performing vertical with 16.5% growth, followed by RCM, BFSI and Travel & Hospitality.
Geography wise, US grew 3.4% and Europe grew 2.1% with a constant currency growth of 2.6%. The digital business grew 2.4% quarter-overquarter and on a full year basis, Digital grew 18.3%, which the company says is a reflection of its strong capabilities in Digital. IMTS was also a high performer for FY 17, which grew by 23.5% compared to FY16. Mindtree over the year made significant progress on the attrition front. Trailing 12month attrition has reduced to 15.1% compared 16.1% in the previous quarter. Quarterly annualized attrition stood at 13.2%, which the company terms the best ever since 2014.
In terms of deals, the company saw strong multi-year multimillion dollar wins, including building a unified digital experience platform for a leading healthcare insurance company, providing managed services for multiple applications to a global leader in the computer software and technology industry, transforming core business processes using Duck Creek and a SaaS product for the leading automotive insurance company, application maintenance support on SAP S/4 HANA suite on cloud for an industrial equipment distributor and many more.
In terms of outlook for FY 18, the company has mentioned that it has made good deal closures of orders worth $209 million in Q4, coming on the back of very strong deal wins in Q3 as well. Out of the deal wins in Q4, $135 million were renewals and $74 million was new orders, and $50 million contracts for the quarter were Digital business contacts. Orders for less than one year was $182 million and $27 million is for greater than one year.