Mindtree Ltd Management Discussions.

Company overview

Mindtree is a technology and consulting services company. We are the go-to digital solutions partner for some of the worlds leading companies. Delivering cutting-edge solutions that solve the most complex problems, we get our customers future, faster.

FY20 quick facts
307 $1,089 Million 764 21,991
Active customers



Mindtree Minds across the globe

Economy review


The coronavirus pandemic has put world economies into a tailspin, impacting all spheres of life as nations imposed varying degrees of lockdown to break the chain of transmission. The International Monetary Fund (IMF) estimates the global economy to contract by as much as 3% in 2020, leading to the worst downturn since the Great Depression in the 1930s. However, if the pandemic subsides by the second half of 2020, we could see a sharp rebound by 5.8% in 2021, supported by the stream of fiscal and monetary stimulus measures announced by various governments.

US GDP is expected to de-grow by 5.9% in 2020 (+2.3% in 2019), before recovering by 4.7% in 2021. Unemployment is estimated to grow to above 15% due to the disruption in economic activity. The US Federal Reserve slashed its policy rates to near zero to cushion the blow.

The European economy is expected to contract by 7.5% in 2020 after registering a moderate 1.2% growth in 2019. Unemployment is rising rapidly. Core consumer price inflation remained muted across most advanced economies. The UK grew at just 0.1% till February 2020, due to subdued productivity growth. The rise of trade barriers as the UK exits, the EU is expected to further weigh on productivity growth.

Growth across emerging economies was weaker than expected in 2019, mostly due to weak domestic demand. The Chinese economy was impacted by the prolonged trade dispute with the US, which was aggravated by the coronavirus outbreak at the end of 2019. As China has been the global manufacturing hub for some time, the coronavirus outbreak and the resultant supply chain disruptions could prompt major economies to reduce their dependence on Chinese production.


As the extent of the coronavirus impact is yet to be ascertained, we see significant downside risks to the forecasts. A lot will depend on the virus epidemiology, the effectiveness of control measures, and the development of therapeutics and vaccines. Emerging economies face additional challenges of a flight risk appetite wanes, while weak healthcare systems further strain public finances, leaving limited fiscal space to st imulate growth.

Global growth forecast (%)
Particulars Actual


2019 2020 2021
World Output 2.9 -3.0 5.8
Advanced Economies 1.7 -6.1 4.5
US 2.3 -5.9 4.7
Eurozone 1.2 -7.5 4.7
Japan 0.7 -5.2 3.0
UK 1.4 -6.5 4.0
Other Advanced Economies 1.7 -4.6 4.5
Emerging Markets and 3.7 -1.0 6.6
Developing Economies
China 6.1 1.2 9.2


The Indian economy witnessed a cyclical slowdown in FY20. The coronavirus outbreak compelled the government to impose a nationwide lockdown in the last week of March which brought economic activities to a halt. The IMF estimates India to grow at 1.9% in FY21, before rebounding sharply by 7.4% in FY21. The central government announced a massive Rs. 20 Trillion stimulus in tranches to minimize the impact, including an Rs. 1.7 Trillion package directed at daily wage earners and the bottom of the pyramid. The IMF lauded Indias efforts in using digital technologies to directly deliver the benefits to its citizens. The Reserve Bank of India (RBI) also sprang into action, cutting policy rates and announcing measures to stabilize the system.


The massive fiscal and monetary responses are likely to stabilize the economy. However, with rising unemployment and struggling small and medium-sized businesses, any recovery is likely to be slow and gradual. That said, India could stage a sharp rebound once the pandemic weakens, thanks to its domestic consumption-driven economy with low, albeit increasing, linkages with global supply chains. Further, sustained low oil prices could further positively impact its fiscal balance.

Industry review

Indias IT industry contributes ~ 7.7% to GDP. The IT Business Process Management (BPM) industry grew 6.1% year-on-year, while the IT & ITES industry grew from $170 Billion in FY19 to $181 Billion in FY20. India has become the worlds largest digital capability hub, accounting for ~ 75% of the global digital talent. Revenue from digital is expected to contribute 38% of all IT & ITES revenue by FY25. Indian IT industry employed 4.1 Million people with a budget of about $90 Billion in FY19. Due to lowering of IT systems related spend by most customers (except infrastructure spend, which will grow to accommodate remote work and business support), the hiring trend could dip in FY21.


The pandemic will bring in long-term changes in the IT industry. These include remote delivery, improvement in productivity, increased offshore work, restructuring of contracts, and new compensation structures with IT customers. The lockdown in different countries across the Americas and Europe and travel restrictions will negatively impact growth. Further, prior projections of the industry size at $350 Billion by FY25 are likely to be revised following cutbacks by customers globally across different sectors.


Revenue contribution from digital business

Business review

For FY20, our revenue stood at $1,089 Million up 9.4% in constant currency and 8.7% in USD terms, driven by the highest-ever deal signings. We saw robust performance across all verticals, with Hi-Tech and Media reporting 13.3% growth, Travel and Hospitality 10.6%, BFSI 4.7%, and Retail, CPG and Manufacturing 3.2%.

Strengths & opportunities

Digital-next, intelligent enterprise for future possibilities

In the present connected world, businesses are highly influenced by their customer experience and the ease of use of their products and services. Emerging technologies are defining businesses even more than before, and simplicity and convenience are driving customer loyalty. Thus, companies are turning more aggressive in their uptake of new offerings to mitigate any possible disruptions to their business models. The primary technology trends in the digital world is evolving around AI, Blockchain, Cloud Computing, Analytics, IoT, and augmented and virtual reality.

The IT market is projected to grow at 6.6% per annum and digital services are expected to lead this growth. This upbeat outlook stems from the increase in the adoption of digital practices by almost all sectors and its ever-increasing scope in governing company spends.

Mindtree plays a pivotal role in its customers digital transformation and the experience of their end-users. Digital contributes to nearly 40% of the Companys revenue and continues to grow, as more digital practices based on the emerging technologies come to the fore. Innovative solutions and platforms are being developed around unique customer asks and cross-sector requirements.

Mindtrees unique digital innovation hub Digital Pumpkin brings together multi-disciplinary and interactive teams to ideate, design and craft meaningful business solutions around the IoT, AI, cognitive computing, virtual and augmented reality (VR/AR), ML, conversational BOTs, cloud and big data.


Automation has become an integral part of all IT processes across all sectors and geographies, as it enables businesses to be more efficient by increasing productivity and accuracy while reducing costs and human interventions. At Mindtree, automation strategy is platform and technology agonistic. Niche technologies like RPA are used to automate repeatable and reusable tasks. We have deployed 764 BOTs, providing support to Mindtree Minds enabling us to ensure top notch delivery to our customers.

Improving efficiency, reliabil ity and quality

Automation works best in conjunction with project lifecycle management, when implemented by teams involved in a projects day-to-day work and when implemented systematically over time.

Apart from automation consultants, Mindtree has also built a strong automation technical team of over 1,300 engineers covering all modern business/IT automation areas, helping customers build automation solutions involving tools and technologies around

RPA, Conversational BOTs, Test Automation, Machine Learning and Cognitive Computing.


BOTs deployed

Application Management Services (AMS)

With the increasing dependence on IT services, companies are more inclined to eliminate redundant processes, lowering inefficiencies and costs, while focusing more on the core business processes to increase revenue.

Mindtree has developed unique end-to-end workflow-driven AMS, which takes complete lifecycle ownership of customer enterprise applications and help in:

• Providing business requirements without services interruption.

Through this, customers can typically save 10-15% on the costs incurred due to business process interruptions

• Lowering the cost of ownership for the platforms. By transferring the maintenance cost of the platforms, customers could free up 15-20% funds for IT projects, which could be better utilized for innovations in the core business processes

• Maintaining control over business applications, and thereby tracking, measuring and managing business process matrices for better governance

Through the AMS practice, we have grown to become a strategic partner for our customers business growth. It has grown to become a key differentiator for Mindtree and is one of the most sought-after practices across our customer base. The wide range of services provided through the AMS practice include:

Transition and planning management: perform system audit and creating a tailored plan for IT transformation completely aligned to business objectives and relevant KPIs

DevOps: automation of all possible IT services and transformation into an agile and lean IT system

Test automation capabilities: for complete software test automation of customer application with reduced time to production

End-to-end managed services: provide omni-channel support and business aligned KPIs

Application modernization: identify and eliminate redundancies in customer systems, thereby enhancing customer experience through increased speed of operation, new features and add-ons With the high rate of adoption of AMS in their IT landscape, customers rely on Mindtree to manage some of their business-critical services. This will be further upgraded in the coming years, enabling Mindtree to become a strategic partner to its customers across multiple domains.

Expert thinking

Mindtree helps its customers reimagine their business, providing unique solutions and digital transformation by leveraging next-generation and emerging technologies. Our services span from ideation to customized solution building to implementation across the entire digital value chain.

Highlights of our industry-leading customer engagements

• Merchant onboarding solution on Blockchain for banks and payment service providers to streamline due diligence and third-party check processes

• Immersive Aurora Platform using AR/VR technology and IoT to help customers with enhanced and contextual experience across multiple sectors

• Cross-company loyalty point exchange program $wap to allow end-users make their reward points more versatile and enable exchange of assets among different entities

• Creation of price elasticity model using AI and ML to provide the optimum price point for travelers

• Solutions for preventive maintenance issue faced by real estate and manufacturing sector players to reduce downtime

Alliances and partnerships

Mindtree is a digital-next company with the main emphasis on the digital transformation of its customers to make them better positioned for future disruptions. Mindtree has grown as a trusted service provider for its customers and has repeatedly proven its technological expertise and domain capabilities. Mindtrees proven track record in developing actionable business solutions and their technical implementation has been further accentuated by our strategic and consulting partnerships with some of the leading enterprise-level product companies.

Our key partner relationships

As a Microsoft Gold Cloud Partner, Mindtree is one of just 25 partners who have access to all Microsoft resources to deliver the best possible solutions to our customers. Through Microsofts partner-led sales model, Mindtree delivers value through its digital, testing, Information Management System (IMS) and other horizontal practices and industry verticals. Mindtree has more than 4,000 Microsoft experts, offering a vast knowledge base and skills in Azure, Office 365, Xamarin, SharePoint , and Microsoft. NET platform, SQL Server, BizTalk and Windows Server. Together with Microsoft, we offer a range of solutions for Azure migration, Customer Experience, Digital Marketing, Insights, Office 365, etc.

Mindtree and Magnet 360 are considered strategic innovator within the Salesforce partner ecosystem. Salesforce relies on Magnet 360 for multi-cloud expertise and marketing automation knowledge, as well as an agile approach in implementing award-winning solutions on the Salesforce platform. As a Platinum partner, we specialize in Salesforce implementation strategies to drive digital growth through customer engagement. Our core Salesforce expertise and our skill in implementing and integrating Salesforces marketing automation solutions in conjunction with Salesforce Community Cloud provides competitive edge. Our Munich CoE spans the full range of the Salesforce Customer Success Platform, including Sales Cloud, Service Cloud and Community Cloud.

We are currently the only integrated service provider in the world with expertise on the SAP HANA platform across all three major public cloud platforms: AWS, Azure, and Google. Mindtree is among a handful of Lighthouse Partners, which enables the Company to offer its customers SAPs reimagined enterprise resource planning solution, SAP S/4HANA via the public cloud. We not only consult and implement SAP, but also have our own product offerings built on SAP technology: mInspect for commercial project management, mPromo for trade promotion, mWorkspace for project health indicator.

Mindtree is an Advanced Consulting Partner in the Amazon Partner Network (APN) for AWS. Partnerships range in the programs like Channel Reseller Program, AWS Service Delivery Program, AWS Public Sector Partner Program, AWS Managed Service Program.

Under the Adobe Solution Partner Program, our partnership brings a full suite of customer experience transformation services and Adobe Experience Cloud solutions to accelerate digital transformation. Our growing relationship with Adobe provides a wide-open lane for our digital experts to unleash the power of Adobe Experience Cloud for our customers. Mindtree is a recognized industry leader by Forrester for digital customer experience, digital operational excellence and application management. This recognition is a testimony to our expertise in helping global brands such as Avis Budget and Kelloggs elevate customer experience with Digital Studio, Experience cloud solution, Agile factory model, automation and insights solution.

Customer focus

Customer satisfaction is one of the key performance indicators in services industry. At Mindtree, we give utmost importance to our customer relationships. We strive to provide the best business and technical solutions and forge a relationship of trust. We have stayed strong to our core values of Collaborative Spirit, Unrelenting Dedication, and Expert Thinking even in the times of turmoil and remained flexible with our offerings that best suit our customers interests. At Mindtree, we always keep communication channels to our customers open to identify and prioritize their needs and create a roadmap for better future engagement.

We regularly gather customer feedback through quarterly Project Feedback Survey (PFS) and annual Customer Experience Survey (CES), which helps in monitoring account health and interest, and provides us the opportunity to understand how we can improve our services. Our customers spread across different industries and geographies provide us key insights from all spheres of engagement, which help us create unique solutions. Customers are also invited to collaborate and co-create innovative solutions leveraging existing and emerging technologies, which adds to Mindtrees unique value proposition.


Mindtree strategy is to deliver unmatched services to its customers through deep domain knowledge and technical expertise. While we continue to focus on existing industry verticals, we have identified three strategic levers to consolidate our deliverables and provide best-in-class outcomes to both our customers and shareholders.

We believe focusing on those areas will enable us to attain market leadership in the identified bus iness segments.


We will simplify and streamline the way we work internally and with our customers. This will enhance our focus on delivering agile, integrated and hyper-efficient business solutions.


Mindtree strives to differentiate in the marketplace through its transformative capabilities, domain depth, unique solutions and frameworks.


To align with the ever-evolving technology landscape and customer expectations, we continue to change our business model, IT delivery processes, and enhance people skills.

Financial review

An overview of our consolidated financial results for FY20 and FY19.



Particulars Rs. in million % of revenue Rs. in million % of revenue Growth %
Income from operations 77,643 100.0 70,215 100.0 10.6
- Employee benefits expense 50,647 65.2 44,212 62.9 14.6
- Other expenses 16,098 20.7 15,358 21.9 4.8
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) 10,898 14.0 10,645 15.2 2.4
Other income (net) 756 1.0 626 0.9 20.8
Foreign exchange gain/(loss) (83) -0.1 267 0.4 -131.1
Finance costs 529 0.7 29 0.0 1,724.1
Depreciation and amortization expense 2,754 3.5 1,641 2.3 67.8
Profit before tax 8,288 10.7 9,868 14.1 -16.0
Tax expense 1,979 2.5 2,327 3.3 -15.0
Profit for the year (PAT) 6,309 8.1 7,541 10.7 -16.3
Key financial ratios
Particulars FY20 FY19
Debtors turnover ratio 5.597 5.973
Interest coverage ratio 16.667 341.276
Current ratio 2.459 3.236
Debt equity ratio 0.1795 0.0003
EBITDA margin 14.0% 15.2%
Net profit margin 8.1% 10.7%
Return on networth 19.5% 24.9%

Change in the interest coverage ratio is due to higher interest costs arising out of the adoption of Ind AS 116 ‘Leases. Similarly, change in the Debt equity ratio is attributable to the component of debt being higher on recognition of lease liability consequent to the adoption of Ind AS 116 ‘Leases.


For FY20, USD revenue grew 8.7% to $1,089 Million while INR revenue rose 10.6% to Rs. 77,643 Million. We analyze our revenue (in USD terms) based on various parameters:

Revenue by vertical: High Technology and Media (Hi-tech) grew 13%, followed by Travel and Hospitality (TH) by 11%

Revenue by geography: US grew 11%, while India grew 27%

Revenue by service offering: Infrastructure management and tech support grew 16%, followed by digital which grew 15%; Package Solutions de-grew by 14%

Revenue by mix: Onsite was up 8%, while offshore was up 10% Our active customers list as on March 31, 2020 stood at 307 as against 349 in the previous year. The number of $10 Million customers remained unchanged at 23, while $25 Million customers increased from 4 to 5.

Other income (excluding foreign exchange loss/gain) Other income for the year ending March 31, 2020 increased to Rs. 756 Million from Rs. 626 Million in FY19. The increase was on account of a gain on fair valuation of investment in mutual funds by Rs. 88 Million and an increase in Interest income on financial asset at amortized cost by Rs. 43 Million.

Foreign exchange loss/gain Foreign exchange loss for the year ending March 31, 2020 was Rs. 83 Million as against a foreign exchange gain of Rs. 267 Million

Break-up of employee benefits expense in the previous year, primarily due to an increase in MTM loss on forward covers and loss on foreign currency valuation of lease liability.


Employee benefits expenses

Employee benefits expenses account for 65.2% of our total revenue and are a major part of our total expenses. The expenses include fixed as well as variable components of our employees salaries, and contribution to provident fund and gratuity. Stock-based compensation and staff welfare expenses are also part of that cost.

For the year ended March 31,




Rs. in million % of revenue Rs. in million % of revenue Increase/ (Decrease)
Salaries and wages 46,962 60.5 40,985 58.4 14.6
Contribution to provident and other funds 3,205 4.1 2,829 4.0 13.3
Expense on employee stock based compensation 102 0.1 162 0.2 -37.0
Staff welfare expenses 378 0.5 236 0.3 60.2
Total 50,647 65.2 44,212 62.9 14.6

Total employee benefits expenses increased by 14.6%. As a percentage of revenue, employee benefits expenses has increased from 62.9% in FY19 to 65.2% in FY20. The increase was in line with revenue and head count and takes into account the one-time incentive given to employees on account of our 20th Anniversary celebrations.

Other expenses

Other expenses comprise all other incidental costs apart from employee benefits costs like travel, sub-contractor charges, rent, computer consumables, among others.

Statement of other expenses

For the year ended March 31,




Rs. in million % of revenue Rs. in million % of revenue Increase/ (Decrease) %
Travel expenses 3,265 4.2 3,006 4.3 8.6
Communication expenses 691 0.9 793 1.1 -12.9
Sub-contractor charges 6,208 8.0 5,281 7.5 17.6
Computer consumables 1,166 1.5 919 1.3 26.9
Legal and professional charges 599 0.8 452 0.6 32.5
Power and fuel 313 0.4 302 0.4 3.6
Lease rentals 170 0.2 1,223 1.7 -86.1
Repairs and maintenance
- Buildings 383 0.5 102 0.1 275.5
- Machinery 59 0.1 61 0.1 -3.3
Insurance 95 0.1 76 0.1 25.0
Rates and taxes 344 0.4 266 0.4 29.3
Other expenses 2,805 3.6 2,877 4.1 -2.5
Total 16,098 20.7 15,358 21.9 4.8

Other expenses increased 4.8% year-on-year mainly due to higher sub-contractor charges, travel expenses, computer consumables and legal and professional charges, repairs and maintenance toward buildings, rates and taxes. There was a one-time expense of Rs. 200 Million toward donation to the PM CARES Fund. The increase was, however, offset by the impact of Ind AS 116 - Leases relating to lease-rentals being accounted during FY20 as payment of interest and repayment of principal, instead of as expenses in FY19. However, other expenses, as a percentage of revenue decreased by 1.2%.

Profitability and margins

• PAT margin dropped by 2.6%, and as a percentage of revenue, decreased from 10.7% to 8.1% in FY20

• EBITDA margin decreased from 15.2% in FY19 to 14% in FY20

• Effective tax rate was at 23.9% in FY20 as compared with 23.6% in FY19

Segmental reporting

The CEO & MD of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Groups performance and allocates resources based on an analysis of various performance indicators by industry classes. Accordingly, segment information has been presented for industry classes.

The Group is structured into four reportable business segments Retail, CPG and Manufacturing (RCM), Banking, Financial Services and Insurance (BFSI), High Technology and Media (Hi-tech) and Travel and Hospitality (TH). The reportable business segments are in line with the segment-wise information being presented to the CODM.

Each segment item reported is measured at the measure used to report to the Chief Operating Decision Maker for the purposes of making decisions about allocating resources to the segment and assessing its performance.

Geographic information is based on business sources from that region and delivered from both on-site and offshore. America comprises the United States of America and Canada, Europe includes continental Europe and United Kingdom and the Rest of the World comprises all other geographies, except those mentioned here and India.

Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainder of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as the underlying services are used interchangeably. The

Management therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as unallocated and directly charged against total income.

The CODM does not review assets and liabilities at the reportable segment level, thus segment disclosure relating to total assets and liabilities is not provided. Geographical information on revenue and industry revenue information is collated based on individual customers invoices or in relation to which the revenue is otherwise recognized.

Statement of Income

Rs. in Million

For the year ended

March 31, 2020 March 31, 2019
Segment revenue from external customers
RCM 16,439 15,660
BFSI 16,479 15,472
Hi-tech 31,793 27,586
TH 12,932 11,497
Total 77,643 70,215
Segment operating income
RCM 2,844 2,579
BFSI 2,001 628
Hi-tech 4,754 5,810
TH 1,299 1,628
Total 10,898 10,645
Depreciation and Amortization expense (2,754) (1,641)
Profit for the year before finance expenses, other income and tax 8,144 9,004
Finance costs (529) (29)
Other income 567 480
Interest income 189 146
Foreign exchange gain/ (loss) (83) 267
Net profit before taxes 8,288 9,868
Income taxes (1,979) (2,327)
Net profit after taxes 6,309 7,541

Significant changes in Balance Sheet items

• Other equity decreased by Rs. 1,497 Million and primarily due to the following:

• Balance in the statement of profit and loss increased by Rs. 337 Million from Rs. 30,265 Million to Rs. 30,602 Million due to current year profit of Rs. 6,309 Million, which is offset by payment of dividend (including dividend distribution tax) of Rs. 5,947 Million. effportion of• Lossarisingfromthechangeinthe cash flow hedge (changes in the fair value of the derivative hedging instrument designated as a cash flow hedge) to the extent of Rs. 2,035 Million.

• Non-current liabilities increased from Rs. 179 Million to Rs. 6,762 Million mainly due to the recognition of lease liabilities (Impact on adoption of Ind AS 116 ‘Leases) and unrealized loss on derivative financial instruments.

• Current liabilities increased by Rs. 4,686 Million mainly due to derivative financial liabilities recognized to the extent of Rs. 1,623 Million, increase in employee benefits payable by Rs. 1,191 Million, recognition of lease liabilities (Impact on adoption of Ind AS 116 ‘Leases) to the extent of Rs. 699 Million and increase in current tax liabilities by Rs. 631 Million.

• Our cash and current investments (net of short-term borrowings and book overdraft) increased from Rs. 9,390 Million as on March 31, 2019 to Rs. 12,809 Million as on March 31, 2020, mainly due to cash generated from operations of Rs. 8,251 Million, offset by dividend payout (including dividend distribution tax) of Rs. 5,940 Million and payment of lease liabilities of Rs. 1,019 Million.

• Days Sales Outstanding (DSO) as on March 31, 2020 stood at 66 days versus 70 days as on March 31, 2019.

People focus, learning and high-performance culture

Mindtree creates a work environment where Mindtree Minds feel recognized for their efforts and contribution, thus creating an organization nurturing high performance, innovation and execution excellence. It provides the opportunity for Mindtree Minds to recognize other Mindtree Minds for their effort, result, and the impact that it has created at an organizational level.

D&I: Our focus on Diversity and Inclusion remains strong, guided by our charter EDGES with focuses on Ethnicity, Disability, Gender and Sexual Orientation. Our women-centric leadership programs Exuberance and Mi-Footprints continue to grow and cover more Lady Minds throughout the organization. We conducted various recruitment drives to increase our gender ratio and conducted events such as International Day of Persons with Disabilities and Womens Day across Mindtree.

Culture application: At Mindtree, we are Expertise-led and Culture-backed. We proudly display our culture through written and video stories on our Culture Application - culture.mindtree.com/. We have over 300 wonderful stories by Mindtree Minds that really define what Mindtree Culture is all about. The app can be used by anyone across the globe to view the stories and they can also submit their own.

Arboretum: Our onboarding program for new Mindtree Minds has seen a transformation this year. The focus has been on ensuring new Mindtree Minds feel welcomed and are given the right information at the right time, from the moment they accept the offer to when they join Mindtree.

Yorbit: Our homegrown, cloud-based learning platform Yorbit has been growing in size and consumption! Yorbit now has over 2,400 courses that cover 900+ skills. More than 87,000 courses have been completed on Yorbit in the current financial year, and over 291,000 courses since Yorbits inception in 2016. Over 2.3 Million hours have been spent learning on Yorbit since its inception. This year Yorbit began offering personalized course recommendations, which it generates from a complex algorithm that considers multiple factors to give relevant recommendations.

Mindtree Kalinga: The Global Learning Center in Mindtree Kalinga was designed to create Engineers of Tomorrow. Here we onboard and train new campus recruits through our 90-day onboarding program Orchard. Since the inception of this program in 2015, over 6,328 Minds have undergone the program and have successfully worked in customer projects on new and emerging technologies.

Leadership development: The 4-day Enterprise Leadership Program was conducted in June 2019 for 33 leaders identified from a combination of talent review and leadership nominations to ensure a diverse group across functions (sales, delivery, enabling functions) and geographies. This group has also been given access to Harvards Learning Platform for anytime anywhere learning. A digital academy was created on Yorbit for ‘Enterprise Leadership spanning ninethemesidentified key focus areas for Mindtree Leaders as (Strategy, Technology, Consulting, Story-telling, Design Thinking, Finance, Rainmaking, Business and Execution) this academy is currently open to all Mindtree Minds.

Succession Planning: Succession insights from talent review process were shared with leadership team on need-basis to support fulfillment/temporary replacement of key positions that fell vacant during the year. Seven internal movements/role enhancements were made in line with the succession plan for leaders covered in talent review last year.

Spot on: At Mindtree, recognition has always been a cornerstone to up the motivation levels of Mindtree Minds and SpotOn Mindtrees Rewards and Recognition tool has been built to strengthen the ways by which Mindtree Minds can recognize each other. Provides people manager and peer awards that focus on instantaneous recognition.

Outstanding performers and achievers: All Mindtrees high performers are recognized as the Outstanding Performers of the year. Flagship program that recognizes, nurtures and enables high-performing Mindtree Minds to reach the pinnacle of success in their careers. Pillar Program - With focus on different career, and learning related initiatives, the Pillar Program has evolved and continues to be an aspiration for all Mindtree Minds. Today we have 1,143 Pillars, with 8 Legends, 9 Titanium, 13 Platinum+, 41 Platinum, 153 Gold, 289 Silver and 630 Bronze Pillars. Pillars of Mindtree across the globe were felicitated in star-studded events in October and November.

Milestone completion celebration - Celebrating Mindtree Minds who have completed 5/10/15 and 20 years with Mindtree.

Mindtree Fellow program: The first two titleholders of the Mindtree Fellow program were identified and recognized based on a rigorous evaluation by an eminent jury comprising the CTO and experts from academia and industry.

With a focus on showcasing the achievements to motivate Mindtree Minds and Teams and to reinforce the right behaviors and culture, the Overall Reward and Recognition framework has been revisited for the coming year.


Mindtree Minds FY20 FY19
Total Mindtree Minds 21,991 20,204
Software professionals 20,817 19,017
Sales 229 256
Support 945 931
Gross additions 5,608 5,346
Net additions 1,787 2,481
Attrition (Last 12 Months) 17.4% 14.2%
Lady Mindtree Minds 32% 31%
Nationalities* 80 70

* Nationalities represent the count of countries to which Mindtree

Minds belong to.

BOTs* 764 576

* A BOT is defined as a software that acts autonomously, free from any interference, human or otherwise, to perform a significant task which will otherwise be performed by a human.











www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/ gdpmonthlyestimateuk/february2020 tradingeconomics.com/united-kingdom/forecast


www.cnbc.com/2020/03/04/euro-zone-growth-likely-to-slow-to-a-crawl-over-the-next-10-years.htmleconomictimes.indiatimes.com/markets/stocks/news/us-fed-slashes-rates-global-central-banks-coordinate-to-cushion-coronavirus-blow/ articleshow/74644335.cms?from=mdr




www.business-standard.com/article/economy-policy/ gdp-first-advance-in-2019-2020-120010700990_1.html

Coronavirus impact on the industry

According to ICRA, the coronavirus outbreak is likely to weigh on the Indian IT services industry in the short term, with the sector clocking 3-5% growth in FY21, down from earlier estimates of 6-8%. Margins are also likely to be negatively impacted, with a recovery likely in FY22. However, the credit outlook for Indian IT companies remains stable, with healthy free cash flows providing cushion to short-term disruptions and significant liquidity. Although ICRA forecasts a gradual recovery during the second half of the year, the estimates may prove to be conservative given the current uncertainty around the pandemics evolution and the full extent of its economic costs. On the supply side, Indian IT services will face issues such as travel restrictions to developed countries as well as closure of offices/work from home at various offshore and onshore development centers. At the initial stages of a project, it is essential to visit customers site, while the latter part can be managed remotely. Commissioning of new projects is likely to get delayed by at least 3-6 months; projects in the pipeline will also face a similar fate. As companies try to ensure least impact on financial payouts and compliance costs, and focus more on outcome-driven engagements, flexi workers will have an edge.

Internal control systems

Mindtree has an Internal Control system, commensurate with the size, scale and complexity of its operations.

Threats, Risks and Concerns

Mindtree is exposed to a wide variety of connected and interconnected risks. To ensure suitable risk prioritization and mitigation, we identify the internal and external events that may affect our strategies and potentially impact our results, capital and reputation. Enterprise risk management (ERM) enables the management to efficiently deal with uncertainty and the associated risks and opportunities together with enhancing the capacity to build shareholder value.

Read more on page 62 and 177


The coronavirus outbreak has virtually brought major economies to a halt, with heightened uncertainty around kickstarting the economic engines. We have invoked our business continuity plan to ensure the health and safety of our employees while fully supporting our customers worldwide. In FY21, we expect softness in overall revenue in H1 due to a drop in demand, curtailment of discretionary spends and cost-optimization pressure within customers business. At the same time, we expect demand for digital transformational services from our customers to increase as they invest into data, cloud-enabled solutions, and customer-centric and end-user experience. We will focus on signing multi-year annuity deals, rationalizing tail accounts and going deeper into the limited set of strategic customers. We are now part of the $21 Billion Larsen & Toubro conglomerate, deriving synergies to grow faster and winning bigger deals. We will continue co-selling with long-standing strategic partners to increase the top-line. Accordingly, we expect the top-line recovery to fructify during the second half of FY21. We will further improve operational efficiencies to continue our profitable growth journey. Our balance sheet remains robust with Cash and Investments of Rs. 13,618 Million as on March 31, 2020 and good cash flow visibility for FY21. We continue to evaluate and take action as necessary to conserve cash. This includes limiting discretionary spending across the organization and prioritizing our CAPEX judiciously to strengthen the top-line and the bottom-line.

Forward-looking statement

Readers are cautioned that this discussion contains forward-looking statements that involve risks and uncertainties. When used in this discussion, the words anticipate, believe, estimate, intend, will and expect and other similar expressions as they relate to the Company or its business are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. The following discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the consolidated financial results of the Company.

Safe harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of 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 customers technology spending, affecting demand for our services, delaying prospective customers purchasing decisions, and impacting our ability to provide on-site consulting services; all of which could adversely affect our future revenue, margin and overall financial performance. Our operations may also be negatively affected by a range of external factors related to the COVID-19 pandemic that are not within our control. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.