BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy
Centrum Broking Report
Mindtree's 1QFY21 results delivered modest miss on USD revenues. EBIT margin was inline and higher other income and lower depreciation led to profit after tax beat our estimates by 7%. Top account Microsoft revenues surged 10.5% QoQ and top account now contributes to 30.1% of total revenues. Revenues from Top 2-10 accounts were down 12% QoQ. We believe demand for Collaboration platforms ( Microsoft Teams etc) owing to Work from Home could have led to steep surge in Top account growth.
Overall , increasing contribution from Top account (now 30% of total revenues) has a flip side as well. Led by 1QFY21 revenue miss, we lower Mindtree's U.S. dollar revenue growth or decline to 12.3% for FY21/FY22E verses 11% modelled earlier. Mindtree's adjusted EBIT margin for 1QFY21 stands at 15% and company has strong margin execution under new leadership. Steady margin execution and lowering depreciation leads us to raise earning per share estimates by 9/5% for FY21/FY22.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
