Last year, the company had put in place a new “4x4x4 strategy”, as part of which it had said that it would work at increasing the share of revenue from its top accounts. In the second quarter of this fiscal, the revenue contribution of its top five clients increased to 40.6% from 35.7% a year ago, while the share of the top 10 clients increased to 49.4% from 45.1%.
CEO Debashis Chatterjee said there is still huge potential to grow the top accounts further. “One of the reasons why we went into the 4X4X4 strategy and we decided to stay focused on these four industries is because of the fact that there’s sufficient headroom within the client portfolio that we have within these industry verticals,” he said. “We also have a wider strategy to focus on the other strategic 100 accounts. We will continue to upsell and cross sell… our vision remains the same.”
Under the strategy announced last year, soon after Chatterjee took over as CEO, the company had said it would focus on four industry groups (retail and consumer products, banking and financial services, travel and hospitality, and communications, media and technology), four service lines (cloud, customer success, data and intelligence, and enterprise IT) in four key markets of North America, Continental Europe, UK and Ireland and APAC and Middle East.
ICICI Securities said the key triggers for the company’s growth in the quarter were the traction in multi-year deals, client mining and scaling existing clients to 50 million, and benefiting from the robust growth in cloud, data and experience. The company reported a net profit of Rs 398.9 crore, up 57.2% year-on-year, and revenue of Rs 2,586.2 crore, up 34.3%.
The growth, said Chatterjee, was broad-based, coming from account mining as well as new deals. The travel and hospitality vertical, which had been hit hardest during the pandemic, was growing in double digits, and was almost back to pre-pandemic levels for Mindtree.
“We have also tried to diversify in terms of our strategy where we are now getting into cruise liners, food and beverage surface transportation… there is also good traction in terms of the digital health passport which we have come out with, which is going to be embedded in solutions for many of our clients,” said Chatterjee.
Most industries are undergoing some kind of digital transformation, and this industry is reimagining the future faster than others, said Chatterjee. A lot of the growth in the travel vertical is coming from the acceleration to digital, as clients reimagine and rework existing business models, he said.