Delivering excellence since 1999
FY19 was a stellar one for Mindtree.
While we had many achievements the milestone we celebrated with great gusto across theCompany was crossing the USD 1 Billion revenue mark. This is truly significant for acouple of reasons. First only one in twenty thousand ideas becomes a billion-dollarbusiness. We beat incredible odds to get here. And second we have arrived here in asustainable way; the organization is incredibly healthy and we did not take any shortcuts.What makes it even sweeter is that we got here faster than many of our larger peers. Allthis is a testimony to the collaborative spirit unrelenting dedication and expertthinking of all Mindtree Minds; the support of our customers; the trust of ourshareholders and goodwill from all other stakeholders. We take this opportunity torededicate ourselves towards engineering meaningful technology solutions to make societiesand businesses flourish.
The passion and commitment of our teams helped us garner many external accolades andrecognition during the year. We are ranked in the leadership quadrant by leading analystslike ISG Forrester Avasant Zinnov etc. for our domain knowledge innovation andtechnology solutions. We are also extremely proud of the awards we received from multipleclients as their preferred partner for innovation and quality.
Aligning our strengths to serve the society
Mindtree.org encapsulates our persistent effort to build technology platforms that helpcreate inclusive societies. We have built five digital platforms in the last five years tohelp serve the society in the areas of livelihood and primary education. About a 100 ofour best engineers have been deep at work bringing all the required investment expertiseand dedication to build solutions that increase income reduce risk and improve workingand living conditions for the millions below poverty line in India. So far more than 1.6Million individuals waste-pickers farmers artisans rural school children and jobseekers have benefited from the Mindtree.org platform. They are using the platform tolearn earn and live better. For example waste-pickers are able to earn three times morewhile preventing 92% of the waste from going to landfill. Small and marginal farmers earnup to five times more and rural school children's learning levels have more than doubledin the communities that we have touched. We are immensely proud of this initiative as weare able to use our core expertise to serve the neediest sections of the society. Weconstantly add innovations to the Mindtree.org platform to serve each and every farmerwaste-picker and rural student within India at present and internationally over time.
Mindtree.org also encourages People with Disabilities (PWD) to participate on an equalfooting with the rest of us in the society.
Mindtree as an organization is an equal opportunity employer. We have over 40 PWDworking and contributing to Mindtree's success. The Mindtree Foundation has devisedseveral exclusive initiatives to help PWD with education medical aid and vocationaltraining. As a technology company we also develop Assistive Technologies to help PWD intheir Activities of Daily Living (ADL). We have also undertaken programs from earlyidentification to early interventions including corrective surgeries.
Mindtree Minds of tomorrow
The year saw us achieve some interesting milestones on the people front as well. Wecrossed 20000 Mindtree Minds during the year. We also crossed 500 BOTs in servicesignaling a new dynamic in our business. We are very proud of our efforts that ensure allMindtree Minds learn new skills continuously to stay relevant in an era of rapid change.Our homegrown learning platform called Yorbit has won awards from leading institutionslike Coursera. Additionally Mindtree Minds completed more than 90000 courses on Yorbitduring the year and over 200000 courses since Yorbit's inception three years back.Keeping our workforce skilled for the needs of today and equipped for the unknowns oftomorrow has helped us immensely on two counts our client satisfaction scores areamong the best in our industry and our attrition rates are among the lowest.
Benchmarking against the best
We are convinced that our role as stewards of your investment in Mindtree means we needto deliver sustainable and superior financial performance. Rigorous governance standardsare an essential ingredient to deliver sustainable financial performance. We havebenchmarked our processes against the best companies globally and we are consistentlyranked high. You have our unequivocal commitment to uphold the highest standards oftransparency and governance in Mindtree. While we have these achievements to celebrate andbuild future successes on we are equally focused on some areas where we need improvement.We would like to share two such high-priority areas. We are conscious that our currentmargin levels are below our expectations and we are working on driving the necessaryimprovements. We have already initiated a multi-pronged strategy to improve ourprofitability involving increased price realization operational efficiency and costcontrol.
The second focus area is to improve our gender pay parity. In some parts of ourbusiness for instance junior roles or international offices there are no materialdifferences. But in other parts of our business for example in middle management rolesin India the gaps need to be addressed as quickly as possible. We are taking immediateaction to address this.
We have incredibly exciting opportunities in the present a thriving pipelinecontinuous industry and customer recognition exposure to cutting-edge work and so on. Weare doing everything to capitalize on them and maintain our high-growth trajectory. Asalways we do not put our future at risk to deliver the present. One of our investments toprepare for the discontinuous change that our industry is going through is the creation ofa new business unit called Enterprise Reimagination Business which is creatingplatform-driven offerings to help enterprise customers address critical business problems.We have a solid team in this unit with impressive credentials and initial traction withclients has been very positive. We expect this to create huge growth momentum for us inthe medium term. This year also saw the doors open to our Centre of Salesforce Innovationin Minneapolis and the Silicon Valley
Reimagination Center. These new offices will help customers look beyond the currentgeneration of digital technologies to fundamentally transform their business. This willalso help us collaborate with the best of the Silicon Valley ecosystem including itsthriving start-ups world-leading academic institutions and innovation centers of largetechnology partners for the benefit of its global clients. Our alliances withleading academic institutions such as Stanford IISc and IITM also prepares us better forthe dramatic changes affecting our industry.
Although the external environment presents a slightly worrisome picture globaltrade wars increasing risk of terrorism disrupting people's lives slowing economicgrowth and political uncertainty we are confident that we are better prepared to handlethese uncertainties than ever before.
Towards the end of the financial year we faced an unusual situation with Larsen &Toubro announcing an unsolicited bid to acquire majority equity control in Mindtree. Thematter is pending regulatory approvals at the time of writing this letter. It may be a fewweeks before we know how this finally shapes up. We would like to reiterate our commitmentto handling this issue in a manner that maximizes value for all our stakeholders.
Before concluding we wanted to share with you our outlook for FY20. We are enteringthe new financial year with many exciting opportunities as well as a few challenges infront of us. Nonetheless we are confident that we will maintain our trajectory of growingfaster than our industry. We estimate that we will deliver a low-teen growth rate in FY20along with a margin expansion of 100-120 bps.
Your affection and confidence motivate us to do more. We are truly grateful for yoursupport.
We look forward to meeting you at the forthcoming annual meeting of our shareholdersand other occasions. The best of Mindtree is yet to come. Welcome to Possible.
With warm regards
|Krishnakumar Natarajan |
|Executive Chairman |