Target: ₹4,050
CMP: ₹3,566.95
We attended Mindtree’s annual investor meet, where the management reiterated its strong demand outlook and detailed the six strategic levers for FY23. It sees scope for continued performance in their 4x4x4 strategy and investments required to boost long-term growth. Here are the key highlights from the meet:
The demand outlook for the industry continues to remain strong. It has not seen any slowdown due to the recent inflationary concerns. This, aided by the ongoing shift of spends to Cloud-based migration from legacy, will help reallocate its technology expenses.
While there is still pressure on the supply-side due to lower fresher additions over the last few years, MTCL is not worried as demand is sufficient to absorb the cost pressures. The management reiterated its plan to maintain EBITDA margin 20 per cent and reinvest any savings in accelerating business growth.
The company introduced its six strategic levers for FY23, which they expect to boost their positioning. These are: a) full stack account, b) reimagine the ecosystem, c) shift from run IT to product IT ops, d) edge to experience for Industry X.0, e) enable industry convergence, and f) next-gen delivery capabilities for integrated solutions.
Travel and Hospitality vertical continues to gain from the normalisation theme. It is seeing strong spend interest from clients in this vertical.