Its consolidated net profit fell by a marginal 2% to Rs 1,162 crore in the September quarter. It was Rs 1,188 crore in the year-ago quarter.
Revenue from operations, meanwhile, jumped 8% to Rs 8,905 crore in the second quarter. The same stood at Rs 8,228 crore in the last year quarter.
The company’s board has also approved an interim dividend of Rs 20 per equity share. The record date for the same is fixed as October 27.
“Our results in the second quarter were highlighted by strong revenue growth of 5.2% YoY, in USD terms, along with a healthy operating margin of 16% despite wage hikes across the organization,” said Debashis Chatterjee, CEO and MD of LTIMindtree.
At 10.32 a.m., the scrip was trading 4.1% higher at Rs 5,368 on BSE. On a YTD basis, the stock has also surged nearly 25%.
Should you buy, sell or hold LTIMindtree’s stock? Here’s what analysts say:Motilal Oswal
Motilal Oswal reiterated its ‘Neutral’ rating on LTIMindtree with a target price of Rs 5,350.
“LTIM, as a combined entity, has deep domain capabilities, strong partnerships with hyperscalers, and a robust sales engine, which will result in industry leading growth rates. We expect a USD revenue CAGR of 11.0% over FY23-25, which is at the top end of our Tier-I IT Coverage Universe. We see a PAT CAGR of 16% over FY23-25E,” Motilal said.
YES Securities
YES Securities maintained its ‘Buy’ rating on LTIMindtree with a target price of Rs 6,360.
“LTIMindtree (LTIM) reported inline financial performance for the quarter. Both, the revenue growth and EBIT margin were as per expectation,” it said.
“We expect revenue growth to pick up from H2FY24 led by robust deal booking and strong deal pipeline. Employee attrition is expected to come down going ahead and should support operating margin. We estimate revenue CAGR of 12.6% over FY23‐25E with average EBIT margin of 17.7%,” it said.
Kotak Institutional Equities
Kotak Institutional Equities maintained its ‘Reduce’ rating on LTIMindtree with a target price of Rs 5,350.
“Despite seeming positive, we cut our FY2024-26E revenue estimates by 1.1- 2.4%. This is largely down to high expectations, courtesy its aggressive guidance at the beginning of the year. Growth will be better than larger peers. We forecast a revenue growth rate of 5.8% in FY2024 and low teens in the subsequent years. We keep our margin estimates unchanged and tone down our FX gain assumption,” it said.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
