Q3FY24 Preview: LTIMindtree: Revenues seen at Rs. 89,926 million, PAT at Rs. 11,399 million

16 Jan 2024 , 09:59 AM

Result date: January 17, 2023

Recommendation: Add

Target price: Rs. 6,100    

Analysts at IIFL Capital Services expect LTIMindtree’s revenues to grow 1% cc sequentially, as ramp up of previously won deals and pass through revenues is partially offset by higher than expected furloughs in Hi-Tech and BFSI. Deal wins are expected to remain healthy, which should provide visibility for CY24 growth. 

The company’s margins are expected to remain flat sequentially, as benefits from productivity improvement are offset by seasonal furloughs in higher margin verticals. 

LTIMindtree’s Profit After Tax or PAT could decline by about 2% on a sequential basis.

Important management insights to watch out for:

• Demand commentary for CY24 particularly in BFSI
• Deal wins and nature of deals
• Margin puts and takes
• Commentary on cost synergies and attrition
• Top clients’ outlook

	December 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	1,083	0.7%	3.5%
Revenue (Rs. mn)	89,926	1.0%	4.3%
EBIT (Rs. mn)	14,388	1.1%	20.2%
EBIT margin	16.0%	–	210 bps
Profit After Tax (Rs. mn)	11,399	(1.9)%	13.9%
EPS (Rs.)	38.4	(1.9)%	13.8%

Source: IIFL Research