LTIMindtree Q4 Results: Profit In Line With Estimates, Board Recommends Final Dividend

LTIMindtree Ltd. reported revenue growth in a quarter when several of its peers faltered amid a banking crisis in their biggest market.

Revenue of the Bengaluru-based IT services firm rose 0.82% over the previous months to Rs 8,691 crore in the quarter ended March 31, according to an exchange filing on Thursday. That compares with the Rs 8,832.47 crore consensus estimate of analysts tracked by Bloomberg.

LTIMindtree Q4 Results FY23: Key Highlights (QoQ)

• Revenue up 0.82% at Rs 8,691 crore (Bloomberg estimate: Rs 8,832.47 crore).

• EBIT rises 16.7% to Rs 1,560.10 crore (Bloomberg estimate: Rs 1,418.09 crore).

• EBIT margin at 17.95% vs. 15.51% (Bloomberg estimate: 16.06%).

• Net profit up 11.33% at Rs 1,114.10 crore (Bloomberg estimate: Rs 1,160.27 crore).

The March quarter results come against the backdrop of LTIMindtree’s aspiration to become a billion-dollar enterprise in the next 2–4 years by building on synergies emanating from the merger of L&T Infotech and Mindtree. The company aims to achieve profitability of 19–20% by FY27.

In the March quarter, Morgan Stanley upgraded the stock to "overweight" as it saw tailwinds outweighing headwinds in the medium term—a potential margin lever.

The share of banking, financial services and insurance segment to revenue increased 38% during the March quarter, as compared with 37.4% in the December quarter. The manufacturing and resources segment retained its share at 17.5%, while the retail segment saw it increase to 15.4% from 15.2%.

Revenue share for hi-tech media and entertainment and health services declined sequentially during the March quarter.

Revenue share from North America dipped to 71.9% during the period under review, from 72.3% in the preceding three months, while that from Europe inched up to 15.4% from 14.9%.

At the end of three months to March 2023, LTIMindtree held a clientele of 728 customers, with 31 new clients added during the quarter. The company had 723 customers in the December quarter of fiscal 2023.

"Our order inflow for the quarter came in at $1.35 billion, helping us close the full-year order inflow at $4.87 billion. We added 31 new clients for Q4 and increased our count of $50 million plus customers by two to 13," said Debashis Chatterjee, the chief executive officer and managing director at LTIMindtree.

"Client requirements have changed over the last quarter, and we are now meeting the new requirements to deliver cost savings which are being directed to fund in flight transformation programs," he said.

The Indian IT major announced a final dividend of Rs 40 for fiscal ending March 2023. The record date for the same will be announced in due course, the company said in a statement.

On Thursday, shares of the L&T Group company rose 3.89% to Rs 4,320.30 apiece on the BSE, even as the benchmark Sensex ended the day 0.58% higher at 60,649.38 points. The quarterly results were declared after market hours.