LTIMindtree expands strategic partnership with SAP, stock up 2.5%

Shares of LTIMindtree were trading over 2.5% higher on Wednesday.

Last month, LTIMIndtree announced a collaboration with IBM to set up a global, joint Generative AI Center of Excellence (CoE) in India. LTIMindtree and IMB’s CoE will offer a comprehensive suite of services, combining LTIMindtree's data and machine learning model customisation and full-stack engineering with IBM watsonx technology which includes watsonx.ai, watsonx.data, and watsonx.governance, and AI assistants.

During the fourth quarter of fiscal year 2024, LTIMindtree reported a 1.2% year-on-year (YoY) decline in its net profit at ₹1,100.7 crore. Revenue during the quarter grew 2.3% YoY to ₹8,892.9 crore. The company’s earnings before interest and taxes (EBIT) for the quarter fell by 7.9% YoY to ₹1,308.7 crore. The EBIT margin contracted to 14.7% during the quarter as compared to 16.4% in the same period of the previous fiscal.

For the financial year ending on March 31, 2024, the company saw its net profit rise 4% YoY to ₹4,584.6 crore. The total revenue grew 7% YoY to ₹35,517 crore. EBIT for the year rose 3.4% YoY to ₹5,568.5 crore.

The company’s net profit margin contracted to 12.9% in FY24 compared to 13.3% in the previous year. The EBIT margin contracted to 15.7% compared to last year’s 16.2%.

LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies.

Shares of the company have declined by nearly 24% since the beginning of the year. The stock has lost nearly 4% in the last one year.