LTIMindtree, a key player in the IT services sector, disclosed its financial results for the March quarter of the fiscal year 2024, revealing a 1.2 per cent year-on-year (YoY) decline in net profit, totaling Rs 1,100 crore.
Sequentially, the net profit also decreased by 5.9 per cent, falling short of the street estimates. Despite these challenges, the company saw a slight growth in revenue, reporting Rs 8,892 crore for the quarter, marking a 2.3 per cent increase YoY but a 1.4 per cent decrease from the previous quarter. This revenue still managed to exceed street projections of Rs 8,971 crore.
The company’s EBIT margin also faced a decline, dropping to 14.7 per cent from 15.4 per cent in the last quarter, missing the anticipated 15.73 per cent. On a yearly basis, LTIMindtree ended FY24 with a consolidated revenue of Rs 35,517 crore, showing a 7 per cent growth from the previous year, while the net profit for the year increased by 4 per cent to Rs 4,584 crore. The EBIT margin for the year was reported at 15.7 per cent.
Debashis Chatterjee, the CEO and Managing Director, commented on the financial results, stating, “We closed FY24 amidst a tough macro environment and delivered a resilient performance with full-year revenue growth of 4.4 per cent in USD terms and an EBIT margin of 15.7per cent."
He further highlighted a robust order inflow for the year, totaling USD 5.6 billion, which represents a 15.7 per cent increase over the previous fiscal year.
Despite a downturn in the quarterly contract values from USD 1.5 billion in the previous quarter to USD 1.4 billion, Chatterjee remains optimistic about the future, stating that the recent quarter's performance was an outlier and anticipates a return to growth in the upcoming first quarter of FY25. He also noted the strategic adjustments made by the company to align its portfolio with current spending trends, setting a strong foundation for capturing discretionary spending as it rebounds.
The company also reported some challenges on the staffing front, with a net reduction of 821 employees in the quarter and a total decrease of 2,896 employees for the year. Attrition slightly increased to 14.4 percent. Leadership shifts were also noted, including the recent resignation of CFO Vineet Teredesai.
In light of the financial performance, LTIMindtree's Board of Directors declared a final dividend of Rs 45 per equity share, signaling confidence in the company's stability and future prospects.
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