LTIMindtree Q1 Results: Profit Rises Over 3% Amid Flat Revenue Growth

LTIMindtree Ltd.'s first-quarter revenue was flat even as a few of its larger peers faltered in the face of a slowdown in discretionary spending.

Revenue of the newest entrant to the Nifty 50 rose 0.12% over the previous three months to Rs 8,702.1 crore, according to a stock exchange filing on Monday. That compares with the Rs 8,775.2 crore consensus estimate of analysts tracked by Bloomberg.

LTIMindtree Q1 Results: Key Highlights (Quarter-on-Quarter)

• Revenue up 0.12% at Rs 8,702.1 crore (Estimate: Rs 8,775.2 crore).

• Ebit up 2.06% at Rs 1,450.8 crore (Estimate: Rs 1,421.7 crore).

• Ebit margin up 32 basis points to 16.67% (Estimate: 16.2%).

• Net profit up 3.39% at Rs 1,151.5 crore (Estimate: Rs 1,194.2 crore).

In dollar terms, the top line grew 0.1% sequentially to $1,058.7 million during April-June, while the bottom line was up 3.4% over the previous three months to $140.1 million. In constant currency terms, revenue was up 8.2% year-on-year.

The IT firm's total contract value, a measure of deal wins, grew to $1.41 billion in April-June from $1.35 billion in January-March.

”Our strategic programmes are bearing fruit, which is evident in the upward movement across our client buckets," Debashis Chatterjee, chief executive officer at LTIMindtree, said in a statement accompanying the earnings. "The order inflow continued to increase and reached $1.41 billion in this quarter. Our operational rigour helped us achieve an EBIT of 16.7% and PAT of 13.2%.”

LTIMindtree's growth in Q1 FY24 was led by its hitech and media and entertainment verticals (up 3.2% QoQ) as well as its top-five clients (up 5.2% QoQ), according to Motilal Oswal. Contributions from the financial services and manufacturing verticals declined sequentially.

As on June 30, the company had 82,738 employees with an attrition rate that eased 240 basis points to 17.8% on a trailing twelve-month basis. Utilisation was up 150 basis points to 84.8%.

The quarterly results of India's sixth-largest IT company come less than a week after the company's stock replaced the exiting HDFC Ltd. in the benchmark Nifty 50. The company is likely to see an inflow of about $150-160 million due to its inclusion in the Nifty 50, according to preliminary calculations by Nuvama Institutional Equities.

On Monday, shares of LTIMindtree Ltd. rose 0.92% to Rs 5,139.90 apiece on the NSE, even as the benchmark Nifty 50 ended the day 0.75% higher at 19,711.45 points. The earnings were declared after market hours.