Great outcomes achieved this year includes Best ever scores on our annual Customer Experience Survey. We ranked equal or better than the best in our industry on critical parameters by CXOs of our customers. The survey conducted by an independent agency, which also conducts similar surveys for many others in our industry. What was especially heartwarming is that the 2nd most frequently expressed expectation by our customers was that they would like Mindtree to help them drive their technology roadmap – i.e. we have now earned the trust of our customers and they are expecting higher value from us. We are energized and humbled by the results and rededicate ourselves to continually creating value for our customers using technology.
Deal wins – we won deals worth $1.01B last year, which included the largest deal yet in our history from one of our customers in the airline industry. This customer has entrusted their entire QA function to us in a multi-year, multi-million dollar deal, reflecting our strong value proposition and relationships that we have built over many years. These wins give us strong momentum for continuing our record of growing faster than our industry, as we enter FY2018-19.
Technology – changes in technology are reshaping our customers’ world as well as our industry. Some of our traditional offerings like coding, testing, managing IT infrastructure etc., have been recast in a very different way through platforms, automation and other forces. We took note of Charles Darwin’s finding – that only those who can adopt fast will survive in periods of rapid change. We embraced the technology revolution and led the thinking for our clients. In many cases we paid the short term price, either by cannibalizing our revenue or sacrificing margins by making investments to prepare for the changes. That call proved to be the right one. We started FY2017-18 with 11.1% EBITDA margins in Q1, but ended the year with 16.1% in EBIDTA margins in Q4, in a period when the appreciating Rupee ate away 0.7% of our operating profits. Q4 FY2017-18 also saw us post a QoQ growth of 5.5% which was amongst the best in our industry.
Some of our noteworthy projects include: We collaborated with a global network equipment leader to design, develop and deploy a software solution, which gives immense flexibility, capex and opex savings etc, to our customer’s customers. This is a service chaining solution which helps meet the challenges of ever growing combination of features, security and bandwidth requirements. Such a solution is critical in the world of large data centers and multi-cloud environments where the end customer does not want to buy additional hardware. This solution has many patents to its credit and has been an instant hit, winning many international awards in networking events like Interop and Network World. Our solution has enabled hundreds of millions of dollars in revenues for our client. This is an area where we are making more investments in the future.
FY2018-19 brings a host of challenges and opportunities. The year ahead is our 20th year in business. We continue to be guided by our mission to “engineer meaningful technology solutions that make businesses and societies flourish”. We will continue to aspire to be our customers’ primary and trusted partner for transformational technology initiatives as well as the place for great talent to flourish. Our goals for FY2018-19 include: 1. Growing faster than our industry. 2. Improving operating margins. 3. Improving our lead over the rest of the industry in Digital – we are in a special place to help our customers lead their industries using data and other digital technologies. For us, our Digital business has grown at twice the company’s growth rate and we will continue this journey. 4. Delivering greater efficiencies for our clients using technology in “run-the-business” programs. 5. Incubate the seeds for a future-proofed Mindtree where we can take new solutions in new business models to enterprises. 6. Increasing the diversity – on gender and ethnicity within Mindtree, narrowing the gender- pay gap.
The revenue gained traction during the second-half of the FY 18. The digital revenue grew at 18.9% in FY 18 against FY 17. The traction in revenue was driven by revenues from our top customer and other clients like a leading consumer credit reporting agency and a Fortune 250 insurance-major.
Our continuing strategic investments in expertise for Domain, Digital and Run are clearly recognized by the market. We have once again exceeded industry estimates for the 5th year in a row and also consistently beating industry growth rates in 9 out of 11 years since our IPO. With a steady pipeline, optimistic demand environment and improvement in win ratios, we are poised for a stronger revenue growth in FY 19 compared to FY 18.
Mindtree manages mission-critical applications for some of the world’s most successful companies. We work with clients to understand businesses and devise customized solutions to maximize application availability, agility and predictability. This in turn leads to lower costs, reduced risk, greater ROI, enabling faster response to market opportunities. We have built engineering centres of excellence around Java, Microsoft and other mission-critical software platforms.
Mindtree’s engineering research and development services help transform product vision into successful real-world designs through engineering expertise and ecosystem partnerships. Our solutions, accelerators, frameworks and proven building blocks reduce product risks and ensure faster time-to-market. We offer flexible business models to help organizations keep pace with today’s changing marketplace and achieve greater profitability.
Mindtree’s application maintenance services are tailor-made for today’s nimble enterprise. Our portfolio-based approach takes a big-picture view of technology, information architecture, people and services. We collaborate with clients to understand their business, processes and applications. Then, we deliver results. We have decades of experience in enhancing application stability, lowering support costs, reducing total cost of ownership and steering companies towards continuous service and quality improvements.
Mindtree consultants define, design and execute strategies that drive business growth, reduce costs and create new revenue streams. We work with our clients to learn their business vision and goals, IT environment, skill requirements and policies. Then we develop short and long-term strategies based on best practices to deliver measurable results. The Mindtree approach reduces the risk of mid-course corrections and delivers outcomes that are more predictable.
Mindtree evaluates and analyses performance of its business based on the four industry verticals of its customers viz. 1. Retail, CPG and Manufacturing (RCM) 2. Banking, Financial Services and Insurance (BFSI) 3.Technology, Media and Services (TMS) 4. Travel and Hospitality (TH)
Did a buyback representing 2.51% of the total issued and paid-up equity share capital of the Company.