DBT Bureau
Bengaluru, 24 April
LTIMindtree will come back to growth path in the first quarter of current financial year after witnessing a dip in its revenue in the fourth quarter of FY24.
In the quarter ended March 2024, the company’s consolidated revenue came in at Rs 8,892 crore, growing 2.3% over the same period of last year. However, in dollar term, revenue was at $1.07 billion, which was down by 1.3% over the previous quarter.
“We have already called out that we had higher than usual pass-throughs in Q3 and the absence of pass-throughs resulted in lower revenues coming in Q4. We had furloughs in Q3 and that was reversed in Q4, which impacted our overall revenue ramp-ups. There were slower ramp-ups in some of the large deals, we had closed earlier. That impacted the revenue uptick. What we can say is that we will definitely get back to growth path as far Q1 (FY25) is concerned,” CEO & MD of LTIMindtree, Debashis Chatterjee said at the post-results interaction with the press.
The mid-tier IT firm posted a 1.2% year-on-year (YoY) decline in its net profit at Rs 1,100 crore in Q4 of FY24. Its operating margin fell 70 basis points sequentially to 14.7% for the March quarter.
For the whole fiscal year, the company’s deal pipeline remained robust at $5.6 billion, a rise of 15.7% over FY23. Its total headcount stood at 81,650, which was a fall of 821 employees as compared to the previous quarter.
On the recent leadership exits, the company said attrition in the leadership is over as the company has completed the integration process.
“As far as leadership attrition is concerned, the merger is pretty much out of the way. We expected some attrition during the integration time. But that is all over. We have enough leadership bandwidth to tide over that. That’s what we are doing. That’s why you are seeing the uptick,” the CEO of LTIMindtree said.
In the last year, around a dozen senior-level executives had resigned from the company. Last week, Pankaj Chugh, executive vice president, global sales and Gregory Dietrich, executive vice president, global sales resigned from the company. Similarly, Vinit Teredesai resigned as the chief financial officer (CFO) of the company to explore opportunities outside the L&T group in March this year.
However, the company management asserted that it has enough hands to man critical positions for driving future growth.
