Mindtree Ltd. is confident of delivering industry-beating numbers through the ongoing fiscal after all its verticals grew and investments in key geographies paid off in the June quarter.
“The fact that we had a good start to the financial year reaffirms our belief that we can deliver industry-leading double-digit growth in FY22,” said Venu Lambu, executive director and president-global markets at Mindtree. “We hope to have good, consistent growth across all the sectors,” he said in an interview with BloombergQuint’s Niraj Shah.
Shares of Mindtree jumped to a record, gaining nearly 9% over the last two sessions, after the earnings. Of the 39 analysts tracking the company, 16 recommend a ‘buy’, 13 suggest a ‘hold’ and 10 have a ‘sell’ rating, according to Bloomberg data. The consensus 12-month target price implies a downside of 10.8%.
The mid-sized information technology company’s dollar revenue rose 7.7% over the preceding three months to $3,210.5 million in the quarter ended June.
Net profit rose 7.5% to $46.5 million.
Lambu said the company also clocked the highest organic growth among peers.
While other segments have shown growth over last two quarters, the performance of banking and financial services was particularly encouraging as it took some time to demonstrate momentum, Lambu said. He is also optimistic that the worst is over for travel and hospitality, the two sectors worst affected by the pandemic.
The hospitality sector has reopened in most countries, Lambu said. “It’s good news for us. We have been seeing green shoots, it just happens that the green gets darker as the quarter goes by,” he said. “Having a third consecutive quarter of 10% growth is indicative of it. But it’s important for us to get the business travel back.”
While Mindtree reported a margin of 17.7% in the June quarter, some analysts have doubts if the company can sustain those levels. Lambu didn’t rule out short-term headwinds because of wage hikes and investments, but he said the company will make efforts to keep the operating margin above 20%.
Watch the full conversation here: