LTIMindtree Q1 Results Preview: Net profit likely to grow 9.1%; reversal of one-off impact may aid margin expansion

The software and consulting firm LTIMindtree is slated to come up with its Q1 earnings later today. Zee Business research desk expects the company to report a consolidated PAT of Rs 1,200 crore in the April-June quarter, a 9.1 per cent sequential increase in comparison to Rs 1,100 crore posted in the previous March quarter.

Revenue at the IT services company during the review quarter is likely to see an uptick on the back of good growth in all the verticals. Consequently, the desk estimates revenue in both rupee and dollar terms to log a quarter-on-quarter growth. Revenue during Q1 is expected to rise by 1.8 per cent to Rs 9,050 crore as against Rs 8,893crore reported during the previous March quarter. In dollar terms, revenue is seen to log 1 per cent sequential growth from Rs 106.9 crore in Q4FY24 to Rs 108 crore.

In constant currency terms, analysts expect revenue growth to be 1.2 per cent. 

The company’s EBIT or earnings before interest and taxes- a profitability metric is also seen to log decent 7.3 per cent growth sequentially to Rs 1,405 crore as against Rs 1,309 crore reported in the preceding quarter.

Margins at the company are seen to gain support from better operating leverage and the reversal of one-off impact. Consequently, analysts see margins to soar by 0.8 per cent or 80 bps to 15.5 per cent in the review quarter. LTIMindtree reported margins at 14.7 per cent in the previous quarter.

Key monitorables

Investors will look forward to the demand outlook, performance of the BFSI sector, outlook on FSI, hi-tech and manufacturing verticals, capital allocation and merger synergies.

LTIMindtree Q4FY24 results

In the March quarter, the company’s net profit declined 1 per cent on-year to Rs 1,100 crore. 

LTIMindtree share price performance

Ahead of its results today, shares of the company ended higher by 1.5 per cent at Rs 5561.65. The stock over the last one year has gained over 9 per cent, sharply underperforming the Nifty IT index that has climbed more than 26 per cent during the same time.