LTIMindtree Reports Slight Q4 Profit Dip, Optimistic About Upcoming Growth

LTIMindtree, a prominent Indian IT services company, disclosed its financial performance for the March quarter on Wednesday, revealing a slight 1.2% year-on-year decrease in consolidated net profit, amounting to Rs 1,100.7 crore. Despite this dip, the company's leadership remains optimistic about rebounding to growth in the April-June period of FY25. The March quarter's financial outcomes were notably influenced by slower project ramp-ups and a subdued performance in the banking and financial services sector.

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Debashis Chatterjee, the Chief Executive Officer and Managing Director of LTIMindtree, expressed confidence during the company's earnings call. He highlighted that the recent quarter's results were an anomaly and projected a return to growth in the forthcoming quarter. Chatterjee attributed the quarter's performance to higher-than-expected pass-throughs in the December quarter and the impact of furlough reversals on revenue ramp-up.

For Q4FY24, LTIMindtree reported an operational revenue of Rs 8,892.9 crore, marking a 2.32% increase from the same period last year, as per a BSE filing. The company has entered FY25 with a robust foundation aimed at driving revenue synergies and executing better strategies despite cautious market conditions.

The North American region contributed significantly to the March quarter revenue, accounting for almost 74%, followed by the European Union at 14.6%. The full-year net profit for FY24 saw a 4% increase to Rs 4,584.6 crore, with operational revenue for the fiscal year reaching Rs 35,517 crore, up by 7% from FY23.

Chatterjee also highlighted the company's resilient performance amidst challenging macroeconomic conditions, with a full-year revenue growth of 4.4% in USD terms and an EBIT margin of 15.7%. The order inflow for FY24 stood at USD 5.6 billion, reflecting a 15.7% growth over FY23.

The company's focus on aligning closely with client needs has been pivotal in achieving significant order inflow. Chatterjee anticipates that LTIMindtree will continue to engage in innovations and partnerships that will shape its journey in FY25.

However, revenue from the BFSI sector witnessed a contraction in the January-March period year-on-year. Amidst these developments, LTIMindtree announced the reappointment of Nachiket Deshpande as whole-time director for another five years starting May 2, 2024.

Deshpande shared insights into the company's hiring strategy, which is expected to align with its growth trajectory in Q1FY25. With over 500 freshers onboarded this quarter and a detailed plan for subsequent quarters, LTIMindtree is poised to scale its workforce in line with anticipated growth.

The company's stock closed marginally higher at Rs 4,732.55 on the BSE following the announcement of these results after market hours on Wednesday. Additionally, LTIMindtree's board of directors has recommended a final dividend of Rs 45 per equity share of Re 1 each, underscoring its commitment to delivering value to shareholders.