Bangalore-based MindTree is pursuing deals valued at $25 million in the remaining two quarters of 2013 fiscal.
“We are pursuing 6-7 large deals that are in the range of $25 million in verticals like manufacturing, BFSI and travel,” said Rostov Ravanan, CFO of MindTree. These deals are important for MindTree as the management has lowered its guidance for fiscal 2013 from the earlier 11-14 per cent to less than 11 per cent as it sees continued delays in decision-making amongst clients in developed markets.
Analysts expect the company to clock 8.5 per cent revenue growth in FY 13 fiscal. Though the company’s stock price fell about 4 per cent to Rs 648, analysts have given the company a thumbs up. “We are hopeful about MindTree management’s plans of closing at least one large deal in the next month in addition to the large deals that it is chasing,” said Ankita Somani, IT and Telecom Analyst at Angel Broking.
Agrees Shashi Bhusan, Senior Research Analyst, Institutional Equities, Prabhudas Lilladher. “The company continues to pin its hopes on large deals in the pipeline and that augurs well.”
Its strategy of going back to the basics of tapping deeper into its top clients has drawn a positive response from analysts. “This strategy is paying off as revenues from its top client Microsoft and five other clients grew 8.4 and 2.3 per cent in the second quarter, according to a report by Aditya Birla Money. On an average, its top five clients grew in excess of its other client growth which stood at 3.4 per cent at the end of the second quarter.
Keywords: MindTree, pursuing deals, remaining two quarters, large deals, in verticals, manufacturing, BFSI and travel, Rostov Ravanan, CFO of MindTree, deals important for MindTree, lowered guidance, continued delays, decision-making clients, developed markets