MindTree Q3 result: Deal wins, strong traction in digital are main triggers

Analysts say there is a scope for further improvement in margins driven by a higher employee utilisation

The MindTree stock has gained 21 per cent in two trading sessions, riding on strong December quarter (Q3) results, robust revenue visibility and improved margin outlook. These have led analysts to revise upwards their earnings estimates for FY19 and FY20. 

The outperformance in Q3 comes after a muted show in the past, which was dragged down by two acquisitions and higher costs. The company had cut its revenue forecast earlier to a high single-digit from a low double-digit growth in FY18. 

However, after the muted performance over the past three quarters with an average revenue growth of 2.4 per cent,