BENGALURU: India is a significant market in LTIMindtree’s rest of the world segment, which contributed 12.8% of its revenues in Q3FY23. It grew 5.4% sequentially and 3.1% year-on-year (YoY). “India presents lucrative opportunities in areas like telecom, including 5G and in manufacturing, to name a few. We will continue to explore more opportunities in this region,” LTIMindtree COO Nachiket Deshpande told this newspaper. In December quarter, North America contributed 72.3% of its revenues and Europe 14.9%.
“We are proud to have started out with a quarterly revenue run rate of over $1 billion and a robust order inflow of $1.25 billion. We reported top-quartile YoY growth in Q3 despite it being a seasonally soft quarter. We are confident in Q4, we’ll be able to come back to industry-leading profitable growth story.”
The company has taken bulk of the integration costs this quarter and said very minimal cost will go into the next quarter. It expects margins to claw back 200-250 bps in the fourth quarter, and the company aims to achieve an additional $1 billion in revenue and 200 bps in EBIT margin as a result of synergies over the next four to five years. LTIMindtree came into existence effective November 14, 2022.
“Both organisations have since aligned fully under the new organisational structure and vision. We are ready with a road map to realise the revenue and cost synergies presented by the merger. We expect to complete the bulk of the integration in Q4FY23,” Deshpande said.
When asked how client conversations are going on, Deshpande said, “We are not seeing any programme cancellations or price cuts in our portfolio. Our top 5 clients grew 17.5% YoY, top 10 grew 13.2% and top 11-20 grew 17.1%.” While some clients have deferred certain projects, some are taking relatively longer
to make decisions, and baking higher caution into their spending plans.