MINDTREE - Q1 FY21 - RESULTS REVIEW

MINDTREE Q1 FY21 RESULTS REVIEW Mindtree (in Rs. Cr.) Jun '20 Mar '20 Jun '19 YOY QOQ Net Sales 1,908.80 2,050.50 1,834.20 4.07 -6.91 N P T 213 206.2 92.7 129.77 3.3 Equity 164.6 164.6 164.5 0.06 0 Reserves Excluding Revaluation Reserves 3,297.30 2,992.20 3,188.80 3.4 10.2 Basic EPS 12.94 12.53 5.64 129.43 3.27 Diluted EPS 12.93 12.52 5.64 129.26 3.27 MP 1003 PE 19 52 Wk L/H 652.5 1061.8              Q1FY20  Q4 FY20 Q1FY21  QOQ      YOY EBITDA  26.5       47.7       46.1      (3.3)%   74.0% EBITDA Margin (%)     10.0%    17.1%    18.2% Effective Tax Rate (%)26.6%    21.0%    26.5% Net Profit Margin (%)  5.1%      10.1%    11.2% ROCE (%)                   15.4%    29.4%    31.1% DSO (Days)                 66          66          67 MP  1003                                         PE   19.38                                       52 Wk L/H     652.5     1061.8    3 YR BEF NOW % GAIN Open Price 516 1015 96.71 lose Price 514.15 975.75 89.78 Key Performance Highlights •Healthy deal closure of $391M in Q1 •EBITDA improved by 110 basis points to 18.2% from 17.1% •PAT% grew to $28.3M from $13.4M YoY                     Revenue by Geography Q1 FY20 Q4 FY20 Q1 FY21 US          73.7%           76.8%           79.0% Europe   17.8%           15.3%           13.1% India      4.1%            3.9%            4.1% ROW      4.4%            4.0%            3.8% Total      100.0%         100.0%         100.0% Revenue by Industry Q1 FY20  Q4 FY20   Q1 FY21 Communications, Media & Technology*  39.4% :43.1%  :  51.0%                                                                BFSI              `                   21.6%    20.4%    20.3% Retail, CPG & Manufacturing22.2%  20.3%    20.6% Travel & Hospitality            16.8%    16.2%    8.1% Total                    100.0%         100.0%         100.0% Revenue by Service OfferingQ1FY20:Q4 FY20Q1FY21 Interactive           23.9%           22.3%           20.9% Data Science and Engineering services                        10.5%           12.4%           11.8% Cloud Services     3.3%      3.8%      4.3% Others                 0.3%      0.0%      0.0% Digital                  38.0%    38.5%    37.0% Test Engineering  18.2%    18.2%    15.5% Package Solutions       7.4%      6.0%      5.5% Infrastructure Management & Tech Support   23.8%    25.8%    28.7% ADM and Product Engineering   12.6% 11.5% 13.3% Total             100.0%         100.0%         100.0% Revenue by Project Type Q1 FY20 Q4 FY20Q1 FY21 Fixed Cost, Fixed Monthly 55.3% 58.8% 67.1% Time & Materials                44.7% 41.2%32.9% Total                           100.0%100.0%100.0% Mindtree Minds Q1 FY20     Q4 FY20 Q1 FY21 Total Mindtree Minds 20,935     21,991   21,955 Software Professionals 19,681  20,817   20,851 Sales & Support          1,254     1,174     1,104 Gross Additions 1,684 1,322     738 Net Additions 731        430        (36) Attrition (Last Twelve Months)  15.1%    17.4%    16.6% Women employees      30%       32%       32% Nationalities*              73          80          81                                                                         Valuation                                                              Market Cap (Rs Cr.)         : 16,422.02                                                                                           P/E                         :               21.87     Book Value (Rs)                :              191.8                                                                                                     dividend (%)      :               130                                                                                                         Industry P/E       :               21.75                                                                                     EPS (TTM)           :               45.64                                                                     P/C                         :               16                                                                           Price/Book          :               5.2                                                                          Dividend Yield.(%)           1.3                                                                                          Face Value (RS)                 10                                                                                            Share Holding Pattern in (%)                                                                             Standalone         Jun-20   Mar-20 Dec-19  Jun-19                                   Promoters          73.49     74.11     73.64     13.3                                        Pledged               0              0              0              0                                              FII/FPI   10.39     11.86     10.46     36.18                                     Total DII               9.36        7.36        8.46        42.46                                     Fin.Insts               1.37        1.24        0.82        0.59                                        Insurance Co      1.73        0.79        1.12        0                                              MF         4.71        3.68        4.25        7.06                                        Others DIIs         1.55        1.65        2.27        34.81                                     Others  6.75        6.67        7.44        8.06                                        Total      99.99     100         100         100                                                                                                                                                         Management                                           Anil Manibhai Naik      Non Executive Chairman                          Sekharipuram Narayanan Subrahmanyan      :Non                                       Executive Vice Chairman                   Debashis Chatterjee   :Managing Director & CEO                               MindTree is a Global Technology services and digital transformation company, guiding its clients to achieve faster business outcomes, announced its consolidated results today for the first quarter ended June 30, 2020 as approved by its board of directors. “We closed the quarter with a healthy order book of USD 391M despite the global headwinds due to Covid-19 pandemic. Our unwavering focus on operational efficiencies has helped us to post a healthy EBITDA of 18.2%,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree. “With our client-first approach, future-ready talent coupled with increase in digital demand, we are confident to strengthen our position in the market and drive profitable growth in these unprecedented times.” Key Financial Highlights: Quarter ended June 30, 2020 In INR: Revenue at ₹19,088 million (decline of 6.9% q-o-q / growth of 4.1% y-o-y) Net profit at ₹2,130 million (growth of 3.3% q-o-q / 129.8% y-o-y) Other Highlights: Clients: 292 active clients as of June 30, 2020 6 new clients added during the quarter People: 21,955 Mindtree Minds as of June 30, 2020 Trailing 12 months attrition is 16.6% Q1 deal wins with leading global clients: New Clients: For a leading manufacturer in outdoor maintenance and gardening equipment, Mindtree has been awarded a program to redefine the e-commerce journey by bringing direct-to-consumer channel using Salesforce commerce cloud and by deploying a new content management system, thereby opening a new revenue stream for the client organization Mindtree has been chosen as the strategic partner for the implementation of Salesforce based Digital Solutions and ServiceNow rollout for pioneer in retail tele-dentistry enterprise based in North America For a global travel technology leader, Mindtree has been chosen as a strategic implementation partner to accelerate their cloud transformation & modernization roadmap to create a new travel market place comprising of critical products and systems across their entire portfolio Mindtree has been chosen for development and testing services for a world leading healthcare manufacturing and distribution company based in North America Existing Clients: Mindtree has been awarded a multi-year global infrastructure services engagement for a top multinational corporate travel and meetings management company to provide 24x7 remote infrastructure management, administration, monitoring and support services for their data centers across the enterprise About Mindtree Mindtree [NSE: MINDTREE] is a global technology consulting and services company, helping enterprises marry scale with agility to achieve competitive advantage. “Born digital,” in 1999 and now a Larsen & Toubro Group Company, Mindtree applies its deep domain knowledge to 290+ enterprise client engagements to break down silos, make sense of digital complexity and bring new initiatives to market faster. We enable IT to move at the speed of business, leveraging emerging technologies and the efficiencies of Continuous Delivery to spur business innovation. Operating in more than 15 countries across the world, we’re consistently regarded as one of the best places to work, embodied every day by our winning culture made up of over 21,000 entrepreneurial, collaborative and dedicated “Mindtree Minds”.