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LTIMindtree Ltd. Q4FY24 Result First Cut ~ Financial performance below estimates; All time high order inflow

• Reported revenue declined to Rs. 8,893 crores (down 1.4% QoQ / up 2.3% YoY) in rupee terms, missing market estimates of Rs. 8,975 crores, owing to degrowth in the BFSI and manufacturing verticals and lower pass-through revenues. Growth in healthcare, consumer business and technology verticals partially offset the decline.
• EBIT declined (down 5.6% QoQ / up 1.9% YoY) to Rs. 1,516 crores, exceeding market expectations of Rs. 1,388 crores. The EBIT margin came at 17.1% (down 75 bps QoQ / down 7 bps YoY) due to higher cost of deals, peaking utilization, and a slower-than-expected reversal of furloughs.
• Net income reduced to Rs. 1,101 crores (down 5.9% QoQ / down 1.2% YoY), missing market estimates of Rs. 1,169 crores. The PAT margin contracted to 12.4% (down 59 bps QoQ / down 44 bps YoY).
• LTM attrition rose to 14.4% (up 20bps QoQ) in Q4FY24.
• Order inflow recorded for FY24 stood at $5.6 billion, up 15.7% YoY. Q4FY24 saw an order inflow of $1.4 billion.
• LTIMindtree reported a headcount of 81,650 employees as of March 31, 2023. The utilization ex. trainees declined 50 bps QoQ to 86.9%.
• The management has declared a final dividend of Rs. 45 per share.

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