2 weeks Ago
LTIMindtree shares slipped 2% to their day’s low of Rs 4,450 on the BSE on Thursday after the IT services firm reported only a modest 2% year-on-year (YoY) rise in consolidated net profit to Rs 1,129 crore for the March quarter, while revenue from operations grew 10% YoY to Rs 9,772 crore.On a sequential basis, net profit grew 4%, while revenue saw a marginal 1% increase.In constant currency terms, revenue rose 6% YoY in Q4, with dollar revenue also up 6%.
However, operating performance weakened slightly—EBIT margins declined to 13.8% from 14.7% a year ago, and gross margins fell to 27.
9% from 29.8%.For FY25, the company reported a 5% rise in constant currency revenue and an EBIT margin of 14.
5%. Our key verticals and a major geography drove our yearly growth despite an ongoing challenging macro environment. The robust order inflow, driven by a significant array of AI-led deal wins, illustrates the pervasive integration of AI across our service offerings, said Debashis Chatterjee, CEO and MD, LTIMindtree.
Among segments, BFSI delivered 12% YoY growth, manufacturing services rose 13%, and technology and media grew by 2%, while the consumer and healthcare verticals faced headwinds. The company also secured deals worth $1.6 billion during the quarter, up from $1.
43 billion in the same period last year.Also Read: IT stocks rise as bears cover shorts, with a new outlookNuvama trims target price, retains 'Buy' callBrokerage firm Nuvama has maintained a 'Buy' rating on LTIMindtree but cut the target price to Rs 5,200 from Rs 5,350, citing a weaker-than-expected Q4 performance. While BFSI and manufacturing maintained momentum, margins remained under pressure.
Nuvama noted that LTIMindtree had a challenging FY25, especially in the second half, due to deal execution delays and client-specific issues.CEO-designate Venu Lambu has identified margin improvement and industry-leading growth as strategic priorities starting from Q1FY26. Nuvama observed that key headwinds are beginning to ease and that Lambu's initiatives are expected to support a recovery.
The brokerage has trimmed its FY26E and FY27E earnings per share estimates by 3.3% and 2.5%, respectively, due to lowered expectations for growth and margins.
Nevertheless, Nuvama continues to value LTIMindtree at 25x FY27 projected earnings and expects the incoming CEO to strengthen operational efficiency.Also Read: $1 million Bitcoin by 2035? Rich Dad Poor Dad author Robert Kiyosaki’s bold prediction draws mixed reactions from crypto experts(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times).
