LTMindtree is seeing opportunities in multi-year cost takeout deals. Cost reduction and efficiency have taken center 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 yoy rise in profit at ₹1,000.7 crore in its first quarter post merger, however, profits declined 15.82 per cent qoq due to one-time integration costs.
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 canceled, albeit a slowdown.
In terms of verticals, LTMindtree 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 caution in the media and entertainment, retail and CPG verticals.
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 the profitable EBIT growth that we individually had before the integration.” The company aims to have a journey of profitable growth and turn the growth into industry-leading, he added.