LTIMindtree, the result of a merger between Larsen and Toubro Infotech and Mindtree Technologies, witnessed a 2% yearly drop in its net profit for the second quarter. This decline comes amid wage increases and subdued growth in a challenging business landscape.
LTIMintree Q2 Performance: Despite these hurdles, the company posted a net profit of ₹1162.3 crore for the quarter ending in September, slightly lower than the ₹1,189 crore from the previous year.
The company’s revenue, however, showed promise, registering an 8.2% year-on-year increase to ₹8,905.4 crore, surpassing expectations. Debashis Chatterjee, LTIMindtree’s Chief Executive, remains optimistic about the future, highlighting a strong deal pipeline and emphasizing the company’s focus on multi-year efficiency-oriented deals.
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For the fiscal year 2023, LTIMindtree reported a 13.5% revenue growth in constant currency terms and a 27.1% increase in rupee terms. However, the company’s operating margins experienced a dip, attributed to wage hikes introduced during the quarter. Chatterjee remains confident, projecting an EBIT margin range of 17% to 18% by the end of FY24.
The company secured deal wins valued at $1.3 billion, with a significant emphasis on cost-efficiency deals. Geographically, North America and Europe saw growth, while other regions faced declines due to client-specific challenges. In industry verticals, the BFSI sector experienced a slight dip, reflecting ongoing caution in the market.
Price Action: LTIMindtree Ltd. shares were up 4.12% at ₹5,367.75 on Thursday morning.
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