Q2FY24 Preview: LTIMindtree: Revenues seen at Rs. 88,903 million, PAT at Rs. 10,944 million

16 Oct 2023 , 05:33 PM

Result date: October 18, 2023

Recommendation: Buy

Target price: Rs. 5,700

Analysts at IIFL Capital Services are forecasting 1.6% cc sequential growth in LTIMindtree’s revenues, driven by sequential improvement across verticals. Deal wins in Q2 are expected to remain healthy, which should provide visibility for H2 growth. 

Margins are expected to contract by 170 basis points sequentially, due to the full impact of wage hikes partially offset by lack of visa costs and improvement in utilization. 

Profit After Tax (PAT) could decline 5% on a sequential basis.

Important management insights to watch out for:

• H2 revenue and margin outlook
• Signs of merger-related synergies playing out in terms of deal wins
• Deal wins and nature of deals
• Revenue and margin outlook for FY24
• Top clients’ outlook

	September 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	1,075	1.5%	5.2%
Revenue (Rs. mn)	88,903	2.2%	8.1%
EBIT (Rs. mn)	13,364	(7.9)%	(7.2)%
EBIT margin	15.0%	(160) bps	(250) bps
Profit After Tax (Rs. mn)	10,944	(5.0)%	(7.9)%
EPS (Rs.)	36.9	(5.0)%	(7.9)%

Source: IIFL Research