The L&T Group company closed 2020-21 with an order book of $1.4 billion, 12% higher than the previous year, Chief Executive Officer Debashis Chatterjee told ET without sharing the exact value of the deal pipeline, which was better than pre-covid levels. “There are some early greenshoots in the travel business, but we are still a few quarters away from full recovery.”
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The onset of the pandemic resulted in the size of the travel business dropping to half, Chatterjee said, but clients were starting to work on transformation projects focusing on contactless technology and modernisation.
Mindtree last year
announced a 4x4x4 strategy, where it would focus on four key geographies, verticals and service lines. Chatterjee said it is adding healthcare as a fifth vertical, which will be called out separately from FY22, given the kind of traction that the company was seeing in this segment.
Meanwhile, the process of rationalising accounts continues, with the total number of active clients dropping to 270 in March 2021 against 307 in March 2020. “Our strategy has been to ensure that we do deals which are transformational in nature, and some of these deals have been accelerated during the pandemic,” the CEO said.
The objective is to focus on deals where three-four of the service lines can participate, presenting more opportunity to cross-sell and up-sell its services. “There are quite a few deals in the pipeline right now which are all three to five years… what you do see in the order book today is also quite a few longer-term deals,” Chatterjee said.
The contribution of Mindtree’s top client Microsoft Corp. to total revenues dropped to 28% in the last quarter, even as the account grew 29% year on year. Mindtree’s top 10 clients, excluding Microsoft and travel/hospitality clients, grew 29%, while the top 20 grew 18%.
“I think there’s so much potential with the top client, but I also want the remaining portfolio to grow. So, the overall concentration of the top client as part of the overall revenues should decline,” Chaatterjee said.
Net profit of the mid-sized IT firm rose 54% year-on-year to Rs 317.3 crore in the March quarter on the back of revenue that stood at Rs 2,109.3 crore. For FY21, net profit rose 76% over the previous fiscal to Rs 1,110.5 crore while revenue increased 2.65% to Rs 7,967.8 crore.