BENGALURU: LTIMindtree on Wednesday reported a 1.2% decline in net profit for the March quarter at Rs 1,100 crore compared to Rs 1,114 crore in the year-ago period, missing market expectations. Its revenue from operations stood at Rs 8,893 crore, up 2.3% y-o-y, amid a tough macro environment and clients reducing discretionary tech spending.
The sixth largest software company's CEO and MD Debashis Chatterjee said during the earnings conference that revenue growth will return in Q1FY25 and that it will be broad-based.
He added that macro issues are still weighing on the overall demand recovery. The company's order inflow for the full year stood at $5.6 billion, registering a 15.7% growth over FY23, and EBIT margin stood at 15.7%. Talking about margin, the CEO said as they got into the middle of FY24, they realised that some of the assumptions made were not going the way they wanted because of various macro conditions. Going forward, the company has robust margin plans, he added.
Chatterjee also said that clients’ priorities continue to revolve around data transformation and that though the market is still cautious, the company’s execution will be better in FY25.
Talking about revenues, he said they had furloughs in Q3, and then a gradual reversal of furloughs, which also impacted the overall revenue ramp up and with some of the large deals they had closed, the ramp up was slower than expected, impacting the revenue.
LTIMindtree’s BFSI vertical, which is its largest revenue driver, declined 6.6% y-o-y in the March quarter and the CEO said they had unexpected cancellations of two projects in that client base, resulting in some impact on margin.
LTIMindtree's total employee headcount stood at 81,650 employees as of March 31, 2024, declining by about 820 employees sequentially. Its attrition rate stood at 14.4%. The company has onboarded 500 freshers and it said hiring will be need based.
The Board of Directors has recommended a final dividend of Rs 45 per equity share, and the board has also approved re-appointment of Nachiket Deshpande as whole-time Director for a period of five consecutive years effective from May 2, 2024 till May 1, 2029.
The company has about 738 active clients as of March 31, 2024, and its $20 million+ clients increased by 2 on a y-o-y basis and stand at 40.
