Growing in numbers and size

The account mining strategy, crossselling, and upselling are working in favor of the company and are reflected in their top 2 to 20 clients’ growth at 41 percent YoY

Revenue

Rs 108,326 mn

Global technology services and digital transformation company, Mindtree has reported a growth of around 33% at Rs 1,08,326 million in FY 22 compared to Rs 81,195 m reported in FY21. Its revenue has grown from Rs 56,530 m in FY18 to Rs 108,326 m in FY22, over the past five years, the revenue has grown at a CAGR of 17.7%.

Mindtree offers solutions in data analytics, data modernization, cloud infrastructure management, application development and maintenance, DataOps and cybersecurity among others. Media, hi-tech, retail, travel, transportation, hospitality, and consumer packaged goods are key contributors to the Mindtree kitty. Among these, the travel, transportation and hospitality vertical, accounts for nearly 13-14 percent of revenue and was the highest grosser at 7.4 percent. As outlined, the account mining strategy, cross-selling, and upselling are working in favor of the company and are reflected in their top 2 to 20 clients’ growth at 41 percent YoY.

“Our industry-leading growth through a year of rapid business and technology shifts demonstrates the relevance of our value proposition in reimagining businesses and driving digital transformation at scale. Our sequential revenue growth of 5.2% in constant currency made this our fifth consecutive quarter of 5%- plus growth in constant currency. Our full year revenue growth of 31.1% validates our strategy to capitalize on rising demand by diversifying our services portfolio, mining customers, and broadening industry partnerships.”

As has been evident in the last few years the budding appetite to tap into digital and cloud technologies has led organizations to scout for partners and has resulted in newer opportunities for service providers like Mindtree.

Aligning with its growth strategy the company expanded operations in Pune with the opening of its second facility to cater to the rising global demand for its digital transformation services. The center is the company’s third largest globally in terms of headcount. This center focuses on providing digital transformation services to communications, media, technology, retail, manufacturing, banking, financial services, insurance, travel, transportation, hospitality and healthcare companies in North America, Europe and Asia-Pacific.

The company also instated its first development center in Kolkata around March 2022. It will provide digital solutions, consulting, cloud, core modernization, product engineering, business intelligence, data analytics, CRM platform, and cybersecurity services to some of the global retail, consumer goods, manufacturing, banking, financial services, insurance, travel, transportation, and hospitality companies in North America, Europe and Asia-Pacific.

What Next?

Post the supposed hostile takeover of Mindtree by L&T, the industry was rife with rumors of an eventual merger which were disparaged by the stakeholders; with the merger going through at the year-end of 2022 there is another contemplation of L&T Technologies being integrated into the new entity. Though both LTI (now LTIMindtree) and LTS practices are well-defined they could turn out to be the new giant on the block; scaling in capacity, services, and dominance. With Debashis Chatterjee at the helm, most popularly known for uniting and scaling both at the business and leadership level, this could be one mammoth to watch out for.

Key Deals

• A U.S.-based global leader in design software and services chose Mindtree as its strategic partner to provide product support to enhance customer experience and optimize costs.

• A Dutch multinational company awarded Mindtree a managed support services contract for digital marketing, e-commerce, DataOps, and IoT services.

• A leading U.S.-based managed healthcare and insurance company selected Mindtree as a preferred partner for digital transformation and modernization work.

• A leading multinational cards and payments provider selected Mindtree to consult and create a roadmap for its journey to the public cloud for transforming its highly sophisticated operations portfolio and enabling it for the hybrid and multi-cloud environment. This engagement includes defining the target operating model, processes, tools, and skills.

• A leading U.S. flagship airline signed a multiyear contract with Mindtree. As part of the contract, Mindtree will support core airline systems, including commercial, operations and enterprise IT through business verification testing services.

New Investment

• Mindtree acquired the NxT Digital Business from Larsen and Toubro (L&T) to further its offerings in the Internet of Things (IoT) and Industry 4.0 space.

• Mindtree has pacts with companies such as Microsoft, Google, ServiceNow, and AWS. It launched Microsoft’s go-to-market business unit for cloud business and earned Azure Advanced Specialization in Analytics, AI and ML.

Debashis Chatterjee

CEO, Mindtree before the merger

Currently CEO, LTIMindtree

By Minu Sirsalewala

minus@cybermedia.co.in