"We expect margins to improve 90 basis points (bps) QoQ due to the absence of one-time expense of contribution to PM Cares fund (~100 bps). Adjusting for one-time expenses in the previous quarter, the company will report flat margins QoQ to 16.7 per cent. On a YoY basis, the EBITDA margin is optically higher by 670 bps due to the absence of one-time compensation cost (260 bps) & visa cost (30 bps), deferral of wage hikes (190 bps) and low base," the company said in the result preview note.
Centrum Broking expects Mindtree's US dollar revenues to decline by 8 per cent QoQ and 3.1 per cent YoY at $256.1 million. However, it expects steady traction in Mindtree’s top account (24.8 per cent of total revenues) owing to demand for Collaboration platforms etc. Overall, Hitech and Media vertical (43 per cent of total revenues) could show sequential growth, it says.
Net sales (revenues) in rupee terms is estimated at Rs 1,933.8 crore, down 5.7 per cent QoQ and up 5.4 per cent YoY. EBIT margin is expected to rise 102 bps QoQ and 711 bps YoY at 13.5 per cent. Net profit is estimated at Rs 198.5 crore, down 3.7 per cent QoQ and 114.1 per cent YoY.
Growth outlook of the top client, margin outlook, the management strategy for the next two years, outlook on T10 accounts and pricing and renewal commercials/ Days Sales Outstanding (DSO) situation with large accounts are some of the key things to watch out for.