MindTree (BUY) - Quarterly estimates - ICICISecurities

- Expect 3% QoQ dollar revenue growth - US$ revenues are expected to grow 3% QoQ vs. 2.8% QoQ growth in Q4FY13, despite ~60bps cross currency impact.

- EBITDA margins are expected to decline 70bps QoQ due to 150bps impact of higher visa costs, wage hikes for junior employees and fresher intake of 460. Re/$ depreciation of 1.6% QoQ will be the key tailwind.

- Forex Losses: Expect forex gains to the tune of US$6-8mn as against ~$3mn forex loss in Q4FY13.

- Effective tax rate is expected to remain same QoQ at 23%.

- Recurring PAT likely to grow 47.4% QoQ primarily because of the forex gains in Q1FY14 as against forex losses in Q4FY13.

- Key factors to watch: i) Outlook for the PES segment, ii) large deal wins, iii) recruitment plans and iv) margin outlook and capex plan.

Source : Equity Bulls

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