MindTree’s second quarter numbers fell short of market expectations and the stock is reacting to that.

Speaking to CNBC-TV18, Debashis Chatterjee, MD & CEO of MindTree said that green shoots were visible in the travel and hospitality vertical. However, he said a full recovery was still a few quarters away.

“Domestic travel is coming back a little bit, but there is no news about international travel. So, my view is that travel and hospitality will take much longer to fully recover,” he said.

Total active client number will continue to fall, said Chatterjee. “We will not do anything which is not in the interest of the client as well as us. So there is always a careful balance that we do. However, long tail rationalisation is something which will continue,” he said.

Chatterjee further added that exposure to travel and hospitality led to the fall in top 10 clients’ contribution. “If you look at our exposure to travel and hospitality sector, we had significant number of strategic clients there and some of those clients are no longer part of the top 10 if you go by the revenues. So there is a little bit of shift,” he said.

“Overall situation is quite optimistic as far as total contract value (TCV) is concerned this year,” Chatterjee said. He said that the renewals in Q1 led to a spike in TCV. He further added that the overall TCV in H1 was 10 percent higher year-on-year.