LTIMindtree shares down 2% after Q4 results fail to impress
Upstox
2 min read • Updated: April 25, 2024, 11:04 AM
Summary
LTIMindtree's net profit in the March 2024 quarter declined by 1.2% year-on-year. In the first trading session following the results, the stock opened in the red.
The shares of IT services major LTIMindtree plunged in the early hours of trading on April 25, after the company, a day earlier, reported lacklustre financial results for the fourth quarter of financial year 2023-24 (Q4 FY24).
At 10:42 am – an hour after trading began – the shares were trading at ₹4,636 apiece, marking a plunge of 2% or ₹94 as against the previous day’s close.
LTIMindtree had declared its Q4 earnings post the market hours on April 24. The company reported a 1.2% decline year-on-year (YoY) in consolidated net profit for the March quarter to ₹1,100.7 crore but exuded confidence it will get back to growth in the April-June period.
The Q4 report card was impacted by slower ramp-ups and weak showing in the banking and financial services space.
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The company's revenue for operations for Q4 FY24 came in at ₹8,892.9 crore, higher by 2.3% from the year-ago period, according to its exchange filing.
For the full FY24, the net profit was 4% higher at ₹4,584.6 crore. The revenue from operations for the full fiscal stood at ₹35,517 crore, 7% more than the previous fiscal.
What LTIMindtree management said on subdued Q4 results
"This quarter was a one-off. We will return to growth in Q1(FY25). The positive outcomes of our positioning as an organisation with scaled expanded capabilities and stronger partnerships continue to reflect in our order inflow and pipeline," Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree, said during the company's earning call for the fourth quarter.
He said the company saw higher than usual pass-throughs in the December quarter, and the absence of those pass-throughs reflected on the topline performance in Q4.
"We had furloughs in Q3, we had a gradual reversal of the furloughs which also impacted the overall revenue ramp up... in some of the large deals that we have closed, the ramp up was slower than what we had expected, so slower rampups also impacted the overall revenue," he said.
He further said the company has entered FY25 with a strong foundation to drive revenue synergies.
"Reflecting on LTIMindtree's achievements and looking forward, I am confident that the insights gained and the strategies implemented will enable us to execute better," he added.
With PTI inputs