LTIMindtree stock trades flat post the resignation of Chief Marketing Officer

Shares of LTIMindtree dropped nearly 1 percent in trade on October 9 post the resignation of the company’s Chief Marketing Officer.

At 12:32 pm, the LTIMindtree stock was trading 0.73 percent lower at Rs 5,200.12 on NSE.

LTIMindtree informed exchanges through a filing on October 7 that the Chief Marketing Officer of the company, Paresh Vankar has resigned from his position with effect from October 6.

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IT services major LTIMindtree on July 17 declared a consolidated net profit of Rs 1,151.5 crore in the first quarter of the fiscal year 2023-24, which marks a jump of 4 percent compared to Rs 1,106 crore reported in the year-ago period.

The revenue from operations in Q1FY24 climbed by 14 percent on-year to Rs 8,702 crore, according to a regulatory filing. It was, however, marginally lower by 0.5 percent compared to the CNBC TV-18 poll estimate of Rs 1,458 crore. In constant currency terms, the revenue growth came in at 0.1 percent, which is lower sequentially compared to 0.7 percent in the March quarter.

The revenue in dollar terms came in at $1,058.7 million in the June quarter, which is marginally lower than estimates. The earnings before interest, tax depreciation and amortization (EBITDA) came in at Rs 1,635 crore during the quarter under review, which is 9 percent higher compared to the year-ago period. The EBITDA margins, however, dropped to 18.8 percent from 19.5 percent in Q1FY23.

In terms of industries, LTIMindtree recorded the highest growth in the BFSI segment at 12 percent, and a 1 percent growth in other key verticals such as hi-tech, entertainment and media. Geography-wise, the revenue growth was highest at 10 percent in North America region, followed by 7 percent in Europe. For the rest of the world, the revenue declined by 2.6 percent.

LTIMindree recorded total deal wins worth $1.41 billion in Q1FY24 and added 19 more clients during the three-month period to take the overall client count to 723.

Brokerage Views

Morgan Stanley is ‘Overweight’ on LTIMindtree and has raised the target price for the stock to Rs 6,150 from Rs 5,450 per share in a recently released report. Brokerage firm YES Securities is also bullish on LTIMindtree and has recommended a ‘buy’ rating on the stock with a target price of Rs 6,190 in its research report dated July 17.

Stock Performance

LTIMindtree stock has given a return of 8.46 percent over the last six months. The benchmark Nifty50 index has given a return of 11.12 percent over the same duration.

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