Mindtree to continue mining its top client accounts as a part of the 4*4*4 strategy.

Indian IT services provider Mindtree said that it would continue mining its top client accounts to grow further.

Last year, Mindtree had put in place a new “4*4*4 strategy”, as a part of which it would work at increasing the share of the revenue from its primary accounts. However, in the second quarter of FY22, its revenue from its top five clients’ contribution increased to 40.6 percent from 35.7 percent of the last year. The share of the top 10 clients surged to 49.4 percent from 45.1 percent.

Debashis Chaterjee, chief executive officer of Mindtree, said, “One of the reasons why the company went into the 4X4X4 strategy and decided to stay focused on these four industries is because there’s sufficient headroom within the client portfolio that it has within these industry verticals. We have a broader strategy to focus on the other strategic 100 accounts.”

Last year the company announced the strategy; soon after Chatterjee took over as CEO, it said it would converge 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 the Middle East.

Brokerage firm ICICI Securities said the critical triggers for Mindtree’s growth in the Q2 were the traction in multi-year deals, client mining and scaling existing clients to 50 million, and benefitting from the robust growth in cloud, data, and experience.

Mindtree reported a net profit of Rs. 398.9 crore, an increased 57.2 percent yearly and revenue of Rs. 2586.2 crore, up 34.3 percent. Chatterjee said that the growth was broad-based, coming from account mining and new deals. The travel and hospitality segment, which had been hit worst due to the pandemic, was growing in double digits and back to pre-covid levels for Mindtree.