LTIMindtree Q4 FY24: Profit Dips Slightly, Revenue Up, Misses Estimates
Profit: LTIMindtree's net profit for Q4 FY24 came in at Rs 1,100 crore, a 1.2% decrease year-over-year (YoY) compared to Rs 1,141 crore last year. This figure fell short of analyst expectations from Bloomberg.
Revenue: Revenue for the quarter reached Rs 8,892.9 crore, reflecting a 2.3% YoY increase. However, it declined slightly by 1.4% compared to the previous quarter (QoQ).
Full Year: Despite the Q4 dip, LTIMindtree reported positive growth for the entire fiscal year. Net profit for FY24 stood at Rs 4,584 crore, representing a 4% rise year-on-year. Revenue grew 7% YoY, reaching Rs 35,517 crore, translating to $4.3 billion in US dollar terms.
Positives: LTIMindtree secured significant new business opportunities with a 15.7% YoY increase in order inflows, totaling $5.6 billion. They also added 30 new clients, including nine Fortune 500 companies. The company anticipates growth in Q1 FY25 despite expressing cautious optimism for the full year.
Challenges: Profitability was impacted by several factors. LTIMindtree experienced higher furloughs and cancellations of two deals in the Banking, Financial Services and Insurance (BFSI) sector. Margins also dipped to 14.7% from 15.4% in the previous quarter, partially due to rising Selling, General & Administrative (SG&A) expenses. Analysts attribute some of these challenges to top management exits following the merger with Mindtree.
Regional Performance: Growth was primarily driven by North America, while Europe and the BFSI vertical saw a decline.
Headcount: The company's total headcount reached 81,650, with a slight increase in attrition (14.4%) compared to the previous quarter. They also hired over 500 fresh graduates during the quarter.