LTIMindtree Q3 Results Review — Result Miss; Synergy Benefits May Take Longer Than Expected: Dolat Captial

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.LTIMindtree Ltd. reported revenue growth of 1.9% QoQ in constant currency terms (our estimate: 3%), impacted due to higher furloughs and fewer working days. Key verticals (QoQ): banking, financial services and insurance (up 5.7%), hitech, media and entertainment (down 4.7%) and manufacturing and resources (up 10.5%).Operating profit margin contracted by 360 basis points QoQ to 13.9% (our estimate: 14.5%), due to furloughs and fewer working days (130 bps), one-off integration costs (100 bps) and higher employee costs (130 bps). Expect steady reversal of these impact by FY24E.Management highlighted clients deferred some projects and slowed decision making, however no project cancellations was witnessed. LTIM’s aspiration of $1 billion from revenue synergies and 200 bps margin improvement is expected to be achieved over next four-five years. While LTIM is confident on benefitting from integration synergies, we believe that transition period to profit synergies will take much longer to play out, especially in light of worsening global macros..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

LTIMindtree Q3 Results Review — Result Miss; Synergy Benefits May Take Longer Than Expected: Dolat Captial

LTIMindtree reported revenue growth of 1.9% QoQ in constant currency terms impacted due to higher furlough, fewer working days.

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