MindTree Ltd

Last modified by Asif Farooqui on 2021/04/06 10:11

Company Overview

Mindtree (NSE:MINDTREE)delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. “Born digital,” Mindtree takes an agile, collaborative approach to creating customized solutions across the digital value chain. The company's deep expertise in infrastructure and applications management turns IT into a strategic asset. Whether you need to run your business more efficiently or accelerate revenue growth, Mindtree can get you there.¹

Services

Digital

Big data. Digital Business Strategy. Digital business solutions. Digital Consulting. Social media. Mobile platforms. Omni-channel Strategy. Each presents unique opportunities for customer insight and new sources of revenue.²

Mindtree’s digital business strategy services helps you transform your business by leveraging digital technologies. The company guide you through the maze of device proliferation and show you how to leverage data for a more efficient workforce, faster time-to-market and richer customer experience. With the help of its digital strategy framework, organizations can make sense of digital disruption and outpace competition.

Cloud
Data Analytics
Internet of Things
AR/VR Services
Conversational AI
Digital Commerce
Digital Marketing
Mobility
User Experience Design
Portals & Collaboration
The Digital Pumpkin
B2B Customer Success
Customer Onboarding - Cloud

Operations Services

Mindtree is here to be that partner. Leveraging its years of experience in IT operations and a deep understanding of the areas that will accelerate your journey—and your profitability—we will work with you to create an operations initiative so you can save money on running your business and free up resources for growth.³

Agile
Application Development & Support
Automation
Business Process Management
Infrastructure Management
Test Engineering
Application Managed Services
Integrated Services
Reliability Engineering Management Services

IT Consulting

Mindtree’s IT consulting services help organizations better understand emerging technologies, implement Agile design principles and take a strategic approach to adopting tools and methodologies.⁴

Using a holistic approach, the company help you define, design and execute strategies that optimize costs and quality while creating new revenue streams.

Agile
Application & Infrastructure Optimization
DevOps
Information Strategy & Governance
Quality Assurance Strategy & Process

Engineering R&D

Mindtree’s Engineering Research and Development (ER&D) services combine core ER&D skills with a sharp focus on Digital Transformation supported by the intrinsic innovation culture to deliver comprehensive product engineering and R&D services. The company's services help transform a product vision into successful real-world designs through engineering expertise and ecosystem partnerships. The company's solutions, accelerators, frameworks and proven building blocks reduce product risks and ensure faster time-to-customer.⁵

MindTree has partnered with the world’s leading product vendors in new product introduction and derivatives, productization, commercialization, product quality engineering, management of end-of-life and sustenance, and product re-engineering.

The company specialize in:

Short-range Wireless: With licensable Bluetooth Intellectual Property (IP) products including EtherMind and BlueLite, the company provide high-end consulting, platform integration, porting, system and interoperability testing services for Bluetooth and WiFi technologies to Original Equipment Manufacturers (OEMs) and Semiconductor companies.

Embedded Intelligence: With expertise across variety of Real-Time Operating Systems (RTOS) including Linux, Android, FreeRTOS, QNX, and Windows, and engineering service offerings across all layers of software stack covering Board Support Package, Device Drivers, Middle Layer and Applications, the company help OEMs make the best use of hardware to enable features, provide best-in-class usability and product transformations.

Embedded Intelligence
Product Sustenance
Short-range Wireless
Wireless IP Portfolio
Wireless Lighting Solution

Enterprise Software

Mindtree has built unique Azure-based P2P offerings for targeted GTMs: SAP QuickDeploy, Murex on Azure, Duck Creek on Azure, InnoApp for AKS quick app modernization, Gladius (smart connected buildings) and Shotclasses (video training platform)⁶

At Mindtree its goal is to help organizations adopt Azure seamlessly, transform and operate efficiently. MindTree has been in this journey for more than a decade when Azure was codenamed as RedDog.

As a globally managed, Gold Certified Microsoft Azure Partner & Microsoft Advanced Support for Partners, Mindtree has access to Microsoft support programs and Microsoft cloud solutions. The company collaborate closely with Microsoft to develop next-generation Cloud solutions its clients require in a Cloud-first, mobile-first world.

Mindtree brings in deep expertise in Oracle on-premise and Oracle Cloud implementation and management services for clients across industry verticals. The company's consultative approach, Atlas Managed Services Framework, focus on LEAN principles and automation help optimize RUN costs to free up resources for Innovation.

At Magnet360, Mindtree’s global Salesforce practice, MindTree has collaborated closely with Salesforce for 15 years.

Microsoft
Oracle
Salesforce
SAP

Products

Connected Buildings

Gladius Connected Buildings, goes beyond automation of air-conditioning and lighting systems in isolation. Capable of connecting geographically dispersed buildings, it works on multiple aspects including management of multiple building systems, access control, and video surveillance; while integrating IT systems. As a result, you can achieve energy efficiency, better asset life, cost optimization, increased occupant comfort and centralized management. Most building management systems, capable of operating in a lights on mode, but inflexible when it comes to adding new solutions. Gladius Connected Buildings, on the other hand brings together mobility, cloud and the Internet of Things (IoT) to make today’s facility management capable of being dynamic and responsive. The platform is centralized empowering the senior management team to get access to real-time data from a central location.⁷

Gladius Connected Buildings platform- Seamless integration of the OT and IT world, on an IoT platform

We, at Mindtree, have developed an IoT platform called Gladius Connected Buildings, which simplifies management of geographically dispersed buildings. It combines the two ecosystems of operations technology (OT) and information technology (IT) to create a centralized, automated and intelligent platform.

Gladius Connected Buildings, brings together multiple systems within the IT and OT realms. As a result, you can manage multiple equipment, third-party systems (e.g. access control and people counter), and IT systems (e.g. ERP, ticket management, etc.) from one solution – aka Gladius Connected Buildings.

Employee Training & Microlearning

Company's aim to reducing attention spans and increased mobility has created the need to deliver engaging content in bite sized modules. The result: superior employee engagement and performance and better business results.⁸

Reimagine Learning and Engagement with Shotclasses

Gamification & Social Learning: Game-like mechanics and peer-to-peer learning to incentivize learners to improve attention, memory, and motivation.
Continuous and personalized engagement: Anytime, anywhere access to a business learning app in multiple languages to reinforce learning at the point of need.
Learning Option Recommendations: SaaS based platform that automates learning recommendations based on learners’ preferences and needs.
Impact Assessment: Impact measurement through interactive dashboards and real-time reports.

Alliances

Mindtree works in an inherently competitive market that is evolving at an unprecedented rate due to advances in technology and customer demands. To meet this rising demand trend, global companies need to innovate and invest in disruptive technologies to better compete with others in the market. The technology ecosystem banks heavily on integrative solutions, which is why it is important for technology service providers and innovators to collaborate to create sustainable solutions. At Mindtree, its idea of collaboration and partnership is to deliver appropriate technology solutions to new and existing clients that result in better business outputs and outcomes for them. When its clients achieve what they envisaged by deploying its partner enabled technology solutions it ensures their trust in it, which is its key priority when it comes to its customer engagement strategy.

Strategic Partners

Adobe
Amazon Web Services (AWS)
Duck Creek Technologies
Google Cloud
Informatica
Microsoft
MuleSoft
Murex
SAP
Sitecore
PTC

Solution Partners

Acquia
Apigee
Backbase
CenturyLink Technology Solutions
Cloudera
DataStax
Denodo
eBaoTech
e-Spirit
Hortonworks
Hybris
IBM
i-exceed
MapR
Neotys

Industry Overview

India’s IT industry contributes ~ 7.7% to GDP. The IT Business Process Management (BPM) industry grew 6.1% year-on-year, while the IT & ITES industry grew from $170 Billion in FY19 to $181 Billion in FY20. India has become the world’s largest digital capability hub, accounting for ~ 75% of the global digital talent. Revenue from digital is expected to contribute 38% of all IT & ITES revenue by FY25. Indian IT industry employed 4.1 Million people with a budget of about $90 Billion in FY19. Due to lowering of IT systems related spend by most customers (except infrastructure spend, which will grow to accommodate remote work and business support), the hiring trend could dip in FY21.⁹

Outlook

The pandemic will bring in long-term changes in the IT industry. These include remote delivery, improvement in productivity, increased offshore work, restructuring of contracts, and new compensation structures with IT customers. The lockdown in different countries across the Americas and Europe and travel restrictions will negatively impact growth. Further, prior projections of the industry size at $350 Billion by FY25 are likely to be revised following cutbacks by customers globally across different sectors.

Business Overview

For FY20, its revenue stood at $1,089 Million up 9.4% in constant currency and 8.7% in USD terms, driven by the highest-ever deal signings. The company saw robust performance across all verticals, with Hi-Tech and Media reporting 13.3% growth, Travel and Hospitality 10.6%, BFSI 4.7%, and Retail, CPG and Manufacturing 3.2%.

Strategy

Mindtree strategy is to deliver unmatched services to its customers through deep domain knowledge and technical expertise. While the company continue to focus on existing industry verticals, MindTree has identified three strategic levers to consolidate its deliverables and provide best-in-class outcomes to both its customers and shareholders. The company believe focusing on those areas will enable it to attain market leadership in the identified business segments.

Simplify

The company will simplify and streamline the way the company work internally and with its customers. This will enhance its focus on delivering agile, integrated and hyper-efficient business solutions.

Differentiate

Mindtree strives to differentiate in the marketplace through its transformative capabilities, domain depth, unique solutions and frameworks.

Change

To align with the ever-evolving technology landscape and customer expectations, the company continue to change its business model, IT delivery processes, and enhance people skills.

Financial Overview

Income

For FY20, USD revenue grew 8.7% to $1,089 Million while INR revenue rose 10.6% to Rs 77,643 Million. The company analyze its revenue (in USD terms) based on various parameters:

Revenue by vertical: High Technology and Media (Hi-tech) grew 13%, followed by Travel and Hospitality (TH) by 11%

Revenue by geography: US grew 11%, while India grew 27%

Revenue by service offering: Infrastructure management and tech support grew 16%, followed by digital which grew 15%; Package Solutions de-grew by 14%

Revenue by mix: Onsite was up 8%, while offshore was up 10%

The company's active customers list as on March 31, 2020 stood at 307 as against 349 in the previous year. The number of $10 Million customers remained unchanged at 23, while $25 Million customers increased from 4 to 5.

Other income (excluding foreign exchange loss/gain)

Other income for the year ending March 31, 2020 increased to Rs 756 Million from Rs 626 Million in FY19. The increase was on account of a gain on fair valuation of investment in mutual funds by Rs 88 Million and an increase in Interest income on financial asset at amortized cost by Rs 43 Million.

Foreign exchange loss/gain

Foreign exchange loss for the year ending March 31, 2020 was Rs 83 Million as against a foreign exchange gain of Rs 267 Million in the previous year, primarily due to an increase in MTM loss on forward covers and loss on foreign currency valuation of lease liability

Expenses

Employee benefits expenses

Employee benefits expenses account for 65.2% of its total revenue and are a major part of its total expenses. The expenses include fixed as well as variable components of its employees’ salaries, and contribution to provident fund and gratuity. Stock-based compensation and staff welfare expenses are also part of that cost.

Total employee benefits expenses increased by 14.6%. As a percentage of revenue, employee benefits expenses has increased from 62.9% in FY19 to 65.2% in FY20. The increase was in line with revenue and head count and takes into account the one-time incentive given to employees on account of its 20th Anniversary celebrations.

Other expenses increased 4.8% year-on-year mainly due to higher sub-contractor charges, travel expenses, computer consumables and legal and professional charges, repairs and maintenance toward buildings, rates and taxes. There was a one-time expense of Rs 200 Million toward donation to the PM CARES Fund. The increase was, however, offset by the impact of Ind AS 116 - Leases relating to lease-rentals being accounted during FY20 as payment of interest and repayment of principal, instead of as expenses in FY19. However, other expenses, as a percentage of revenue decreased by 1.2%.

Profitability and margins

Net profit after tax was Rs 6,309 million for the year ending March 31, 2020 compare with Rs 7,541 million for year ending March 31, 2019.

PAT margin dropped by 2.6%, and as a percentage of revenue, decreased from 10.7% to 8.1% in FY20

EBITDA margin decreased from 15.2% in FY19 to 14% in FY20

Effective tax rate was at 23.9% in FY20 as compared with 23.6% in FY19

Mindtree Consolidated December 2020 Net Sales at Rs 2,023.70 crore, up 2.97% Y-o-Y ¹⁰

January 19, 2021; Reported Consolidated quarterly numbers for Mindtree are:

Net Sales at Rs 2,023.70 crore in December 2020 up 2.97% from Rs. 1,965.30 crore in December 2019.
Quarterly Net Profit at Rs. 326.50 crore in December 2020 up 65.74% from Rs. 197.00 crore in December 2019.
EBITDA stands at Rs. 529.50 crore in December 2020 up 55.23% from Rs. 341.10 crore in December 2019.
Mindtree EPS has increased to Rs. 19.82 in December 2020 from Rs. 11.97 in December 2019.