LTIMindtree Q4 profit falls 1.2%, revenue edges up

India's sixth-largest IT services firm LTIMindtree on Wednesday reported a 1.2% year-on-year (YoY) decline in net profit at Rs 1,100 crore for the March quarter of the financial year 2024 missing street estimate of Rs 1,150 crore. The profit stood at Rs 1,114 crore a year ago.

Sequentially, the Mumbai-headquartered company's net profit fell by 5.9% from Rs 1,169 crore.

During the quarter, its consolidated revenue came in at Rs 8,892.9 crore, up 2.3% YoY from Rs 8,691 crore in the year-ago quarter. Revenue dipped 1.4% QoQ from Rs 9,016 crore in Q3FY23.


“This quarter was a one off, we will return to growth in Q1 (FY25)… we still see the level of caution that we have seen. The macro is playing very heavily as far as FY25 is concerned… though the market is still cautionary, our execution will be better in FY25,” said Debashis Chatterjee, chief executive officer and managing director of LTIMindtree in a post results conference call.

Full year

For the full year, net profit rose 4% YoY to Rs 4,584.6 crore while revenue increased by 7% to Rs 35,517 crore. In dollar terms the revenue stood at $4.3 billion, up 4.4% YoY and growth in constant currency terms was at 4.2%.

Ebitda margins declined both for the quarter as well as full year. For FY24 to 15.7% as compared to 16.2% in FY23. For the final quarter margins declined to 14.7% from 15.4% in the previous quarter.

Last quarter, Chatterjee had told ET that muted revenues, ramp-up of new deals and a focus on growth volumes could defer margin guidance of 17-18%.

“In terms of our focus on margin, there is no change. But the plan that we had in terms of are executing within a particular timeline that has been deferred by a few quarters,” he said on Wednesday.

Segment-wise during the quarter, the company faced two unexpected project cancellations in its largest segment banking, financial services and insurance (BFSI) vertical resulting in a dip of 6.6% YoY and 2.8% QoQ dip in revenue growth. Its consumer business also degrew a tad by 0.6% YoY yet up 1.2% on a QoQ basis.

The company witnessed growth in tech, media, and communications, which rose by 7% YoY and 5.1% QoQ and 7.4% YoY and a dip of 7.6% QoQ in manufacturing.

In terms of geographies, in Q4, North America grew 3.7% while Europe and rest of the world degrew by 3.6% and 7.8%, respectively.

The deal order inflow for the full year registered a 15.7% growth over FY23 at $5.6 billion.

On the post-merger exits and synergies, Chatterjee said, “The merger is well behind us… we have been operating as a single entity pretty much starting the last financial year. The exits”

Headcount wise, the company saw a dip by 821 from previous quarter and by 2896 from a year ago with a total of 81,650 employees as of March end.

On hiring without giving a specific number, chief operating officer Nachiket Deshpande said, “As we look to return to growth in Q1, we also expect accordingly the hiring numbers to also go up. we see an increase in our hiring numbers for Q1 already.”

We onboarded 500 employees as part of our campus hiring as part of the quarterly plan, which will continue, he added.

The Board has also recommended a final dividend of Rs 45 per share for the financial year 2023-24.

On Wednesday, the company’s shares ended marginally higher by 0.23% at Rs 4,732.55 apiece. The results were announced after market hours.

In 2024 so far, shares of LTIMindtree have fallen nearly 25% owing to weak business growth and missing margin range.