LTIMindtree is seeing opportunities in multi-year cost takeout deals. Cost reduction and efficiency have taken centre-stage for clients as they still want to fund the transformation journeys they started, said Debashis Chatterjee, MD & CEO.
The company recorded a 4.7 per cent y-o-y rise in profit at ₹1,000.7 crore in its first quarter post merger, however, profits declined 15.82 per cent q-o-q owing to one-time integration costs.
Client sentiments
Client sentiments are changing amidst an uncertain global environment, said Chatterjee. “Clients are becoming cautious about discretionary spending and are delaying decisions,” he said, adding that deals are not getting cancelled, albeit a slowdown.
In terms of verticals, LTIMindtree sees an opportunity for growth in the BFS sector and some parts of hi-tech, according to the CEO. However, the company is also noticing extra cautiousness in the media and entertainment, retail and CPG verticals.
Larger opportunities
Chatterjee said the newly-formed merger synergies are working out well and are enabling the firm to shape some larger opportunities with clients. The company aims to increase the wallet share in existing clients. “We now have an end-to-end capability, which plays out well with many of our clients,” he said.
LTIMindtree took a hit on the operational front in Q3 due to the integration costs. Speaking about the outlook for the same, Chatterjee said, “As far as Q4 is concerned, our EBIT will be 200-250 basis points higher than it was in Q3. As we enter FY24, we will be back to profitable EBIT growth that we individually had before the integration.” The company aims to have a journey of profitable growth and convert the growth to be industry-leading, he added.
