15/07/2024- LTI Mindtree is projected to experience a marginal revenue increase in Q1FY25 in constant currency terms, driven by broad-based growth across various verticals. The BFSI segment is anticipated to recover, benefitting from the absence of project cancellations that occurred last quarter.
Key factors to monitor include the demand outlook for the BFSI sector, signs of recovery in discretionary spending, progress in merger synergies, elevated senior management attrition in recent quarters, and the visibility of deal ramp-ups.
Comments
Manish Chowdhury, Head of Research, StoxBox
“LTI Mindtree revenue may see a marginal increase in revenue in Q1FY25 in cc terms. We expect broad-based growth across verticals. The BFSI segment should recover due to the absence of project cancellations last quarter. We expect modest margin expansion with bench build-up, investments in sales, deal transition costs and visa costs consuming most of the incremental profitability. Furthermore, management commentary on the demand outlook for BFSI, indications of recovery in discretionary spending, merger synergies progress, elevated senior management attrition in recent quarters, and deal ramp-up visibility would be key things to watch out for.”
