Due to strong demand across various verticals, mindtree IT services provider Ltd. said its new deal pipeline is at an all-time high.
L&T Group ended 2020-21 with an order book of $1.4 billion, up 12% from the previous year, according to Chief Executive Officer Debashis Chatterjee, who did not reveal the exact size of the transaction pipeline, which was better than pre-covid levels. “There are some early signs of recovery in the travel industry, but we are still a long way from complete recovery.”
The travel industry shrank by half as a result of the pandemic, according to Chatterjee, but clients were beginning to work on transformation projects centered on contactless technology and modernization.
Last year, Mindtree unveiled a 4x4x4 plan, in which the company would concentrate on four main geographies, verticals, and service lines. Given the momentum the company is seeing in this segment, Chatterjee said it is adding healthcare as a fifth vertical, which will be named out separately from FY22.
Meanwhile, account consolidation continues, with the total number of active clients falling to 270 in March 2021, down from 307 in March 2020. “Our approach has been to ensure that we do deals that are transformational in nature,” the CEO said, adding that some of these deals were intensified during the pandemic.
The aim is to concentrate on sales in which three to four of the company’s service lines will participate, allowing for more cross-selling and up-selling opportunities. “Right now, there are a lot of deals in the pipeline that are all three to five years… “There are quite a few longer-term deals in the order book today,” Chatterjee said.
Even though the account rose 29 percent year over year, the contribution of Mindtree’s top client Microsoft Corp. to overall revenues fell to 28 percent in the last quarter. Except for Microsoft and travel/hospitality clients, Mindtree’s top 10 clients grew by 29%, while the top 20 grew by 18%.
“I believe the top client has a lot of potentials, but I also want the rest of the portfolio to expand. As a result, the overall concentration of the top client as a percentage of total revenues could decrease,” Chatterjee explained.
The mid-sized IT firm’s net profit increased 54 percent year over year to Rs 317.3 crore in the March quarter on revenue of Rs 2,109.3 crore. Net profit increased by 76 percent to Rs 1,110.5 crore in FY21, though revenue increased by 2.65 percent to Rs 7,967.8 crore.