 "LTIMindtree")
IT services major LTIMindtree reported a net profit of Rs 1,100 crore for the fourth quarter of financial year 2023-24 (FY24), down 1.2 per cent year-on-year (Y-o-Y) from Rs 1,141 crore in the same quarter last financial year.
Revenue grew 2.3 per cent Y-o-Y for the fourth quarter to Rs 8,892.9 crore. Sequentially, revenue was down 1.4 per cent.
LTIMintree’s fourth quarter performance missed Bloomberg estimates. Bloomberg had estimated revenue to be at Rs 8,975.1 crore for the fourth quarter and profit to be at Rs 1,154 crore.
For the full year, the company reported a net profit of Rs 4,584 crore up 4 per cent Y-o-Y. Revenue grew 7 per cent at Rs 35,517 crore at the end of 2023-24.
In dollar terms, the firm’s revenue touched $4.3 billion. LTIMindtree, like its peers, recorded healthy deal wins.
It reported order onflows at $5.6 billion, up 15.7 per cent Y-o-Y. The management also said it added 30 new clients, of which nine were Fortune 500 firms.
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On the demand scenario, the management said the firm expects Q1 FY25 to report growth.
“We do see caution among clients and it is too early to call out on how FY25 will look. But we can confidently say that in Q1 FY25, we will see growth,” said Debashis Chatterjee, chief executive officer (CEO) and managing director (MD), LTIMindtree, during a media call after the results.
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The company also said that its Q4 performance was impacted due to higher furloughs as well as two deals in the BFSI segments were cancelled.
Margins for the fourth quarter came in at 14.7 per cent, down from 15.4 per cent reported in the preceding quarter.
“LTIM has been missing estimates for a couple of quarters, reflecting weakness and pressure amid the challenging environment. Further top management exits, which were foreseen as key risks at the time of the merger, seem to be playing out. They are likely to deter and defer the gradual recovery in the near-to-medium term. We have a hold rating on the stock,” said Sanjeev Hota, head of research, Sharekhan by BNP Paribas.
Growth for the quarter was driven by North America, which grew 3.7 per cent Y-o-Y and 0.1 per cent sequentially. Europe was down 3.6 per cent Y-o-Y and 0.2 per cent sequentially.
Like its other large peers, LTIMindtree’s BFSI vertical was down 2.8 per cent sequentially and 6.6 per cent Y-o-Y.
The company had a total headcount of 81,650. Attrition for the fourth quarter was marginally up at 14.4 per cent, compared to 14.2 per cent in Q3 FY24.
During the fourth quarter, the firm hired over 500 from campuses.
