LTIMindtree surges as Street loves Rs 40 per share dividend; Q4 results below estimates

Shares of LTIMindtree jumped 2.4 per cent in early trade on Friday, a day after the technology major reported its fourth-quarter results for the financial year 2022-2023. LTIMindtree's revenue in the March quarter came in at Rs 8,691 crore, up 0.8 per cent on a sequential basis but lower than Zee Business estimate of Rs 8,800 crore. On an year-on-year basis, LTIMindtree's Q4FY22 revenue stood at Rs 7,128 crore. LTIMindtree's Q3FY23 revenue had come in at Rs 8,620 crore. In dollar terms, LTIMindtree's revenue stood at $105.75 crore ($1.05 billion) in the March quarter, up a percent sequentially from $104.67 crore ($1.04 billion) the information technology firm had posted in Q3FY23.  LTIMindtree's net profit came in at Rs 1,114 crore in the March quarter, jumping 11.4 per cent sequentially from Rs 1,000 crore it had clocked in Q3FY23. LTIMindtree's operating margin came in at 16.2 per cent for the entire year, while EBIT rose 18.8 per cent sequentially to Rs 1,422 crore in Q4FY23. 

LTIMindtree Dividend

LTIMindtree's board has also recommended a final dividend of Rs 40 per equity share for the financial year ended March 2023 that will be credited within 30 days from the conclusion of the annual general meeting (AGM), the company said in an exchange filing, while adding that the record date for the purpose of determining shareholders eligible to receive dividend and the date of the AGM will be intimated in due course. Against a face value of Re 1 each, it translates to a dividend of 4000 per cent. 

What the LTIMindtree management said

“We are pleased to report a strong FY23, with a broad-based full-year revenue growth of 19.9 per cent in constant currency,” said Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree. “This industry-leading performance positions us well to deliver continued profitable growth in FY24. As we move to unified systems & processes, we are ready to exploit the synergies." LTIMindtree's order inflow for the quarter came in at $1.35 billion, with the full-year order inflow at $4.87 billion, said Chatterjee.

LTIMindtree added 31 new clients for Q4 and increased its count of $50 million plus customers by 2 to 13. The company's operating margin was at 16.2 per cent and the basic earnings per share (EPS) was at Rs 149.1. EPS is a company's net profit divided by the number of common shares it has outstanding.

LTIMindtree stock price - Morgan Stanley cuts target

LTIMindtree shares opened at Rs 4,320.30 on BSE in early trade, surging 2.4 per cent to an intra-day high of Rs 4,423.  LTIMindtree stock has been gaining for the last two days and has risen 4.58 per cent in the period. The counter in the last year has given a negative return of nearly around 10 per cent, underperforming the benchmark BSE Sensex by 15.5 per cent. During the same period, Sensex has risen over 5 per cent. Among brokerages, Morgan Stanley has maintained an overweight stance on the stock, reducing target price to Rs 5,250 from the previous Rs 5,600 per share.

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