LTIMindtree on April 24 reported a 1.2 percent year-on-year (YoY) decline in net profit at Rs 1,100 crore for the March quarter of the financial year 2024.
Sequentially, the IT services company’s net profit was down by 5.9 percent, coming significantly lower than Moneycontrol estimate of Rs 1,143.13 crore in net profit.
LTIMindtree's consolidated revenue came in at Rs 8,892 crore, growing 2.3 percent YoY and decling by 1.4 percent quarter-on-quarter (QoQ), surpassing Moneycontrol’s estimates of Rs 8,971 crore.
The EBIT margin or operating margin declined sequentially to 14.7 percent from 15.4 percent last quarter, missing Moneycontrol's estimate of 15.73 percent.
On a full year basis, LTIMindtree ended FY24 with a consolidated revenue of Rs 35,517 crore, growing 7 percent YoY. Net profit for the year stood at Rs 4,584 crore, increasing 4 percent. EBIT margin for the year came in at 15.7 percent.
Debashis Chatterjee, Chief Executive Officer and Managing Director said, “We closed FY24 amidst a tough macro environment and delivered a resilient performance with full-year revenue growth of 4.4% in USD terms and an EBIT margin of 15.7%. Our order inflow for the full year at $5.6 billion registered a 15.7% growth over FY23."
"This growth reflects the positive outcomes of our positioning as an organization with scale, expanded capabilities, and larger partnerships. As the market dynamics evolve, we are excited to be part of innovations, partnerships, and initiatives that our clients will embark on in FY 25,” he added.
Total contract value (TCV) for FY24 stood at $5.6 billion. TCV for Q4 stood at $1.4 billion , down from $1.5 billion reported in the previous quarter which was then its highest quarterly deal pipeline.
Speaking of the company's mixed set of numbers, Chatterjee during the Q4 earnings conference said, "This quarter was a one off, we will return to growth in Q1 (of FY25). The positive outcomes of our positioning as an organisation of scale, expanded capabilities and stronger partnerships continue to reflect in our order inflow and pipeline."
"Through the year we have pivoted our portfolio to align with the current spend areas and is positioned well to capture discretionary spending when it returns. We have entered FY25 with a strong foundation to drive revenue synergies," he added.
The Board of Directors at its meeting held on April 24, 2024 has declared a final dividend of Rs 45 per equity share of par value Rs 1 each.
Hiring and leadership churn
LTIMindtree's total headcount declined by 821 employees for the second consecutive quarter in Q4. The total headcount currently stands at 81,650.
On a YoY basis, headcount plunged by 2,896 in FY24.
The company added over 500 freshers in Q4.
Attrition on last-twelve month (LTM) basis, increased to 14.4 percent from 14.2 percent in Q3.
LTIMindtree lost several top leaders in the company in FY24. Some of them include, chief financial officer Vineet Teredesai resigning most recently and also CHRO Manoj Shikarkhane moving to a new role within the company.
"Exits happen as a part of merger in any organisation. Organisation has to be mature enough to manage the exits. We have inherited a significant leadership bench as a part of the merger...that's why we are not worried about leadership strength," Chatterjee said.
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