MindTree — Q1 FY23 Earnings Presentation
21 slides from MindTree's earnings presentation, Jul 13, 2022
Slide 1: Exchange filing cover letter: Investor Presentation
Registered Office Address: Mindtree Limited Global Village, RVCE Post, Mysore Road, Bengaluru – 560059, Karnataka, India. Corporate identity Number (CIN): L72200KA1999PLC025564 E-mail : info@mindtree.com Ref: MT/STAT/CS/2022-23/051 July 13, 2022 To To BSE Limited National Stock Exchange of India Lim
Slide 2: Mindtree Investor Presentation & Factsheet for Q1 FY23
Analyze Reimagine Transform Mindtree Investor Presentation & Factsheet for Q1 FY23
Slide 3: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements, which involve risks and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. The conditions caused by the COVID-19 pandemic could decrease customer’s technology spen
Slide 4: Company snapshot
Company snapshot $1.6B 274 active clients As per Q1 FY23 run rate Leading digital transformation partner with a history of over Presence in two decades 37,400+ Mindtree Minds 24 countries 3
Slide 5: Imperatives that drive our strategy
Imperatives that drive our strategy Build on our existing Develop strategic relationships strengths and partnerships Enhance focus on key Continue to Simplify, growth opportunities Differentiate and Change 4
Slide 6: Strategy for profitable growth
Strategy for profitable growth INDUSTRY GROUPS SERVICE LINES GEOGRAPHIES RCM BFSI Retail, Consumer Banking, Customer Data and North UK Products & Financial Services Success Intelligence America and Ireland Manufacturing & Insurance Health Consulting TTH CMT Cloud Enterprise IT Continental APAC & Tra
Slide 7: Q1 FY23 financial highlights
Q1 FY23 financial highlights PROFITABLE GROWTH $399.3M 21.1% 19.2% 15.1% ₹28.6 Revenue EBITDA EBIT PAT EPS +37.2% YoY ROBUST ORDER BOOK STRONG PERFORMANCE RESILIENT BALANCE SHEET $500M 4.0% QoQ and 28.6% YoY revenue growth All time high Cash & Cash Investment $570M 33.8% YoY EBITDA growth, 39% YoY E
Slide 8: Strong performance for the quarter
Strong performance for the quarter $399.3M $84.2M | 21.1% REVENUE EBITDA Q-o-Q 4.0% Q-o-Q 4.5% 10 bps Y-o-Y 28.6% Y-o-Y 33.8% 80bps 5.5% $ 76.5M | 19.2% ₹ 28.6 Q-o-Q CC Revenue EBIT Growth EPS Q-o-Q 5.2% 30 bps Q-o-Q -0.3% Y-o-Y 39.0% 150 bps Y-o-Y 37.2% 7
Slide 9: Q1 FY23 financials (USD in millions)
Q1 FY23 financials (USD in millions) 4.0% Q-o-Q 4.5% Q-o-Q 383.8 399.3 80.6 84.2 REVENUE EBITDA 310.5 62.9 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 5.2% Q-o-Q 3.8% Q-o-Q 72.7 76.5 62.7 60.3 EBIT 55.1 PAT 46.5 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 8
Slide 10: Q1 FY23 financials (INR in millions)
Q1 FY23 financials (INR in millions) 7.7% Q-o-Q 8.2% Q-o-Q 31,211 6,581 28,974 REVENUE 6,083 EBITDA 22,917 4,645 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 9.0% Q-o-Q 0.3% Q-o-Q 5,982 5,487 4,731 4,716 EBIT PAT 4,063 3,434 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 9
Slide 11: Revenue by Industry Groups
Revenue by Industry Groups Industry Group Mix Q-o-Q Y-o-Y Q1 FY22 Q4 FY22 Q1 FY23 (Revenue %) USD Growth USD Growth BFSI 18.2 18.2 18.6 6.5% 31.7% CMT 45.4 43.3 44.1 5.9% 24.7% RCM 22.1 22.6 19.8 8.7% 15.6% TTH 13.3 14.4 15.4 11.2% 48.9% HCARE 1.0 1.5 2.0 43.5% 170.4% 10
Slide 12: Revenue by Service Lines and Geographies
Revenue by Service Lines and Geographies Q-o-Q Y-o-Y Service Lines Mix (Revenue %) Q1 FY22 Q4 FY22 Q1 FY23 USD Growth USD Growth Customer Success 40.0 42.9 40.8 1.1 % 31.4% Data & Intelligence 15.0 14.9 15.9 11.3% 36.1% Cloud 19.9 19.1 19.5 6.6% 26.4% Enterprise IT 25.1 23.1 23.8 6.8%
Slide 13: Client composition
Client composition CLIENT CONTRIBUTION TO REVENUE (%) TOTAL CONTRACT VALUE ($ in Millions) Q1 FY22 Q4 FY22 Q1 FY23 570 58.0% 504 44.4% 60.2% 58.2% 35.7% 47.5% 390 45.7% 24.9% 38.5% 37.0% 27.4% 26.0% Q1 FY22 Q4 FY22 Q1 FY23 CLIENT METRICS Top Client Top 5 Clients Top 10 Clients Top 20 Clients Revenue
Slide 14: Healthy deal wins – Mix of annuity and transformational
Healthy deal wins – Mix of annuity and transformational A healthcare A leading global A leading hyperscaler A leading U.S.-based An Australian wealth A leading audio technology provider specialty insurance and selected Mindtree for a airline chose Mindtree management group technology company awarded
Slide 15: Awards and recognitions
Awards and recognitions Topped CRISIL’s ESG Recognized as a major contender evaluation of more than Won the Golden by Everest Group in its Healthcare 575 companies in India Peacock Award for Payer Digital Services PEAK across 53 sectors and Risk Management Matrix® Assessment 2022. accorded the 2021
Slide 16: Employee metrics
Employee metrics WORK ETHOS Delivering Anchored by LEARNING CARING Ambitious PURPOSE with Curiosity for People RESULTS Q1 FY22 Q4 FY22 Q1 FY23 >4,700 Total Mindtree Minds 40,000 Attrition (Last Twelve Months) 28.0% 35,000 Software professionals 25,869 33,206 35,375 24.0% Gross addition in 30,000 23.
Slide 17: Employee metrics
Employee metrics UTILIZATION 83.2% 83.1% Certified by Great Place to Work® Institute as a 81.2% Great Place to Work® in India for 2022-23; second consecutive year that we received the certification. Q1 FY22 Q4 FY22 Q1 FY23 EFFORT MIX EMPLOYEE ENGAGEMENT Location % Q1 FY22 Q4 FY22 Q1 FY23 “One-size-f
Slide 18: Key financials and other metrics
Key financials and other metrics Free Cash Flow Cash and Investment Cash Flow (₹ millions) 39,466 36,012 60 29,025 57 DSO (days) 50 5,029 3,997 973 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 EPS Diluted (₹ per share) 44.0 28.7 28.6 41.3 ROCE (%) 37.9 20.8 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22
Slide 19: Hedge position and INR-USD rate
Hedge position and INR-USD rate 147M Fair Value Forward Value Contracts Total hedges $1,866M outstanding in USD 1,716M Avg. rate ₹82.77 Cash flow forward 3M contracts Options Rupee Dollar Rate Q1 FY22 Q4 FY22 Q1 FY23 Period closing rate 74.36 75.90 78.95 Period average rate 73.81 75.49 78.16 18
Slide 20: Merger update - Indicative timelines and key approvals
Merger update - Indicative timelines and key approvals May 6, 2022 June 16, 2022 June 17, 2022 Exp : Q4 FY23* Approval of Scheme No objection letters Filing of applications Final approval of the of Amalgamation by issued by BSE and with Hon’ble NCLT scheme by NCLT Board of Directors of NSE by Mindtr
Slide 21: Mindtree – A Larsen & Toubro Group Company
@ Mindtree ~~ ALarsen & Toubro Grou ip Company | Welcome to possible