Profits for LTIMindtree rose by 4 per cent on a year-on-year basis during the first quarter of FY24. For the June quarter, the IT major reported ₹1,152 crore in net profits; during the same time last year, the company had accrued ₹1,106 crore in net profits.
Just like other IT firms, LTIMindree is also encountering a tough economic situation, which headwinds are not expected to alleviate by the second half of fiscal 2023.
‘Worse than anticipated’
During the earnings call, Debashis Chatterjee, the CEO and MD of LTIMindtree, acknowledged that the headwinds are worse than anticipated. The executive elaborated that the management had assumed that the situation would improve after the first quarter of FY24; however, headwinds have remained in the second half of this fiscal year as well, and the executives remain non-committal on the timeline by which macro pressures will improve.
Revenuesrose by almost 14 per cent on a year-on-year basis to ₹8,702 crore in Q1FY24 from ₹7,644 crore in revenues reported during the same time last year.
EBIT margins rose on a quarter-on-quarter basis to 16.7 per cent in Q1FY24, from 16.4 per cent reported in Q4FY23. However, the IT company reported margins of 17.1 per cent in Q1FY23.
The trailing twelve-month attrition rate for the firm was 17.8 per cent. Given the dearth of projects in the near future, the management said in its commentary that it will be more circumspect about hiring.
As of June 30, 2023, the company has 723 active clients. It added 18 clients on a year-on-year basis in the $5 million+ band, 9 clients on a year-on-year basis in the $10 million+ band, and 3 clients on a year-on-year basis in the $50 million+ band.