In Short:
LTIMindtree, an IT firm, is optimistic about a strong comeback in Q1 FY25 after a profit decline in Q4. The company faced challenges in the last quarter but expects growth in all verticals in the upcoming year. The demand environment remains cautious, with a focus on cost savings and consolidation deals. Margins dipped in Q4, but the company is focusing on profitable growth and balancing margins. They are also adjusting their hiring strategy to adapt to market conditions.
LTIMindtree Aims for Growth in Q1 FY25
After a slight profit decline in Q4, IT firm LTIMindtree is gearing up for a comeback in Q1 FY25. The company’s COO, Nachiket Deshpande, is optimistic about driving broad-based growth and improving margin performance.
Challenges Faced in Q4
In the last quarter, LTIMindtree faced challenges such as absence of pass-throughs, extended furloughs, and slower large deal ramp-ups, impacting revenue growth. However, Deshpande assures that recent deals closed have now ramped up fully. He states, “For FY25, we are seeing a growth prospect across all verticals.”
Caution Persists
Deshpande acknowledges the cautious spending environment but notes that uncertainties from the previous year have dissipated. Clients are now more decisive in their spending, focusing on cost reduction and consolidation deals.
Maintaining Balance
Although margins dropped to 14.7% in Q4, from 15.4% in Q3, LTIMindtree remains focused on achieving profitable growth while balancing margin performance. The company’s margin improvement programme, initiated during the merger, is progressing well.
Deshpande emphasizes, “As growth starts to come back, that will be reflected in our margin performance.”
Future Hiring Plans
While LTIMindtree hasn’t set a specific hiring target, it anticipates that future growth will reflect in its hiring pattern. Deshpande mentions, “The market is such that we are able to hire people in a relatively short time.”
The company is choosing to be more agile in talent acquisition and is focusing slightly more on off-campus hiring this year.
