LTIMindtree margin drops below FY24 guidance in Q2

LTIMindtree, India’s sixth largest information technology (IT) services firm by revenue, saw its operating margin drop below its guidance of 17-18% for FY24.

- 

In its September quarter earnings, filed after the market hours on Wednesday, LTIMindtree reported operating margin of 16%, down 70 basis points (bps) sequentially. However, the company management said in its post-earnings press conference that it remains confident of achieving the guided margin, and has not revised its target for FY24.

LTIMindtree posted 1.6% sequential growth in its dollar revenue to $1.08 billion in the September quarter. Profit after tax (PAT) fell 2.2% from a year ago but rose marginally by 0.8% sequentially to ₹1,162.3 crore.

The revenue from its banking, financial services and insurance (BFSI) vertical, which is the largest contributor to LTIMindtree’s revenues, declined by 1.1% sequentially.

The company largely met analysts’ expectations for quarterly revenue, delivering better-than-expected operating margin and profit after tax, according to an investor note of 16 October by the brokerage house India Infoline.