LTIMindtree reports 1.2% Y-o-Y decline in net profit

IT services firm LTIMindtree reported quarterly revenue of ₹8892.9 crore, increased by 2.3% year-on-year from the previous year while facing a decline of 1.3% sequentially. For the entire FY24, the revenue stood at ₹36,218.9 crore, up by 7.3% compared to FY25. The company reported a net profit of ₹1,100.7 crore, declining by 1.2% year-on-year basis. Calling it a ‘one-off’, chief executive office Debasis Chatterjee said that the company will get back to growth in Q1FY25. 

On yearly basis, the company added two new clients in the $20 million bracket, and 10 in $10 million. “Our order inflow for the full year at $5.6 billion registered a 15.7% growth over FY23. This growth reflects the positive outcomes of our positioning as an organisation with scale, expanded capabilities, and larger partnerships. As the market dynamics evolve, we are excited to be part of innovations, partnerships, and initiatives that our clients will embark on in FY 25.”

In terms of workforce, the employee count is 81,650, a decline of 821 employees, for the second consecutive quarter in FY24. The spokesperson, however, said that in Q4, the company hired 500 fresher employees. The attrition rate trailing 12 months was reported to be 14.4%.

In terms of generative artificial intelligence projects, LTIMindtree is in talks with 140 clients in the proof of concept stage. About 30 use cases have already moved into production in the space of user experience, efficiency practices, and software and engineering. 

“LTIM reported weaker than expected revenue growth in constant currency terms. EBIT margin contracted 70 bps q-o-q to 14.7%, below our expectations of 15%. Order Inflow for FY24 stood at $5.6 billion, up 15.7% y-o-y,” said Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas. “LTIM has been missing estimates for a couple of quarters reflecting weakness and pressure amid a challenging environment. Further top management exits which were foreseen as key risks at the time of the merger seem to be playing out and are likely to deter and defer the gradual recovery in the near to medium term. We have a hold rating on the stock.”