The share price of LTIMindtree fell 3.3% to Rs 4,965 on its first quarterly earnings. The sixth largest IT player reported a net profit of Rs 1,152.3 crore, up 3.4% quarter-on-quarter from Rs 1,114 crore. Although confronted with macroeconomic headwinds, LTIMindtree posted a marginal increase in its Q1 revenue at Rs 8,702 crore, up by 0.12% sequentially.
Stock Call: LTIMindtree
Emkay: Hold
“LTIMindtree posted steady performance in Q1; revenue increased 0.1% QoQ to $1,059 million, a tad lower than our estimates. Deal wins remained healthy at $1.41 billion, with book-to-bill staying stable at 1.3x. BFSI saw muted performance due to some clients continuing with hiring freezes, elongated decision cycles, and slower ramp-ups. Q1 played out mostly in line with Management expectations, but sustained hiring freezes, particularly by BFSI clients, and delay in decision making are expected to weigh on the pace of recovery and the double-digit growth aspiration for FY24. We lower FY24-26E EPS by 0.2-1.2%, factoring-in the Q1 performance and the anticipated slower recovery. We maintain HOLD, with unchanged TP of Rs 4,950/share, at 23x Jun-25E EPS.”
LTIMindtree joins Nifty 50
LTIMindtree achieved a significant milestone in its growth journey by being included in the Nifty 50 index of the National Stock Exchange of India Ltd (NSE). This recognition underscores LTIMindtree’s rapid consolidation and emergence as a leading player in the market since the merger and its commitment to delivering value to stakeholders. The stock joined the benchmark index following the delisting of HDFC shares on 13 July.