IT firm LTIMindtree, on Wednesday, announced its consolidated results for the first quarter ended June 30, 2024. The company reported a revenue of ₹91,426 million with a 5.1 per cent increase YoY. CEO & MD Debashis Chatterjee said that though the market remains unchanged, some green shoots of recovery are visible. “We expect the momentum we have generated in Q1 will continue into the second quarter as well,” he said.
LTIMindtree was formed in 2022 after the merger of two IT majors Mindtree and Larsen & Toubro Infotech (LTI). “At an overall organization level, we have seen a lot of cross-sell, upsell and they have been working out well. This is reflected in the numbers we see today. Q1 has seen a decent 2.5 per cent (revenue in USD) sequential growth. The synergies are working very well and that is reflected in the growth we are seeing right now,” Chatterjee told businessline.
For LTIMindtree, 73.1 percent of its revenue in Q1 came from North America, followed by 15.2 from Europe and 11.7 percent from the rest of the world.
“As an overall strategy, we will focus on the geographies we are working in. Every geography is strategic,” said the CEO adding that North America, which grew 4.4% sequentially, is still the most important geography for the company, followed by Europe, which saw a growth of 1% QoQ.
He added that LTIMindtree’s overall vision is to grow other geographies as well. Last month, the company inaugurated its regional headquarters in Saudi Arabia’s capital, Riyadh, as part of its expansion in KSA and the Middle East.”
“Other plans include expansion into Brazil and newly opened offices in Canada and China. “All of this is in line with our plan to support the strategic geographies. In India, we will grow through strategic opportunities. The kind of work we do here is niche and strategic and that’s what we will continue to do,” said Chatterjee.
Mentioning the company’s total deal booking of $1.4 billion for the quarter, he said, “We view it on a fiscal basis. Last year, we closed the order book at $5.6 billion. $1.4 billion vis-a-vis $5.6 billion is not a bad start to the year. We’ll see how the order book plays out and hope it will strengthen as we move into the next quarters.”
The Banking, Financial Services & Insurance (BFSI) remains a key vertical with a revenue share of 37.5 percent and a QoQ growth of 2.9 percent.
“This quarter, BFSI was good; this is on the back of some consolidation happening among the clients and some high-priority projects coming back. We feel this momentum will continue into Q2 and beyond because BFSI is the one vertical where we have the visibility and confidence to say that, but all other verticals are also important,” he said, adding that tech, media & communications is another vertical that has fared well, with a revenue share of 23.7 percent in Q1.
“The overall organization initiative we put together, like, for example, margin improvement, is working out. We are also focused in terms of our overall global footprint. Our hiring engine is cranking very well. We will continue to work on deals focused on cost, account, vendor consolidation, and transformation. Overall, we are very well positioned to capture the discretionary spend when it comes back because ultimately the return of growth will depend on that factor.” commented the CEO.