Q1FY24 Preview LTIMindtree: Revenue seen at Rs. 87,688 million, PAT at Rs. 12,770 million

17 Jul 2023 , 06:41 AM

Result date: 17^th July, 2023

Recommendation: Buy

Target price: Rs. 5,250

LTIMindtree could post revenue growth of 0.7% cc QoQ, owing to broad-based slowdown across verticals, combined with lower pass-through revenues. The company’s EBIT margins are likely to expand 60 basis points sequentially, on continued cost saving initiatives post-merger.

Analysts at IIFL Capital Services expect the company’s Profit After Tax (PAT) to grow 14.7% sequentially.

Important management insights to watch out for:

• Deal wins highlighting revenue synergies
• FY24 revenue and margin outlook
• Commentary on cost synergies and easing supply side challenges

	June 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	1,067	0.9%	8.9%
Revenue (Rs. mn)	87,688	0.9%	14.7%
EBIT (Rs. mn)	14,907	4.9%	12.3%
EBIT margin	17.0%	60 bps	(40) bps
Profit After Tax (Rs. mn)	12,770	14.7%	15.5%
EPS (Rs.)	43.1	14.7%	15.3%

Source: IIFL Research