India`s LTIMindtree`s Q4 revenue misses estimates as banking vertical bites
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LTIMindtree, India's sixth-largest software company, posted a smaller-than-expected fourth-quarter revenue on Wednesday amid weakness in its banking vertical and persisting merger issues at the firm.
Consolidated revenue rose 2.3% to 88.93 billion rupees ($1.07 billion) in the January-March quarter, falling short of analysts' expectation of 89.82 billion rupees, as per LSEG data.
High inflation and geopolitical risks have pushed clients to cut down on discretionary tech spending, with industry body Nasscom estimating that overall revenue growth in the sector more than halved to 3.8% in the financial year 2024.
LTIMindtree, formed through the merger of two L&T Group subsidiaries, erstwhile Mindtree and L&T Infotech in 2022, saw a slew of senior-level exits over the past few months amid merger-related integration risks.
The Mumbai-based company's net profit fell 1.2% to 11.01 billion rupees during the quarter. Analysts, on average, expected a profit of 11.58 billion rupees, as per LSEG data.
Earlier this month, market leaders Tata Consultancy Services and Infosys posted lower-than-expected revenue.
The L&T Group firm's total order bookings were at $5.6 billion for the full year, compared with $4.87 billion in fiscal 2023.
The company's banking, financial services and insurance (BFSI) vertical, its largest revenue driver, fell 6.6% year-on-year.
LTIMindtree's full-year revenue was up 4.4% in terms of constant currency, while it rose 19.9% in fiscal year 2023.
"As the market dynamics evolve, we are excited to be a part of innovations, partnerships, and initiatives that our clients will embark on in fiscal 2025," said Debashis Chatterjee, CEO of the company.
The company's shares closed 0.1% higher ahead of the results.
($1 = 83.2690 Indian rupees)
