LTIMindtree Q1 results preview: Profit growth likely to be muted; 3 things to watch

LTIMindtree Ltd (LTIM) is likely to post a flattish profit for the June quarter on a single digit rise in sales. Margin may expand year-on-year, but is likely to drop sequentially on visa costs. Deal wins are seen at around $1.5 billion. 

LTIMindtree may report 0.70 per cent YoY rise in net profit at Rs 1,152 crore for the June quarter compared with Rs 1,159 crore in the same quarter last year, Sharekhan said. It sees revenue for LTIM rising 4.3 per cent YoY to Rs 9,079 crore from Rs 8,702 crore YoY. Operating margin is seen at 17.9 per cent, up 63 basis points over the year-ago period's 18.8 per cent. 

The domestic brokerage sees a sequential revenue growth of 1.9 per cent in constant currency (CC) terms, driven by an uptick in BFS and manufacturing. EBIT margins are likely to improve 40 bps QoQ on operational efficiencies.

ICICI Securities sees adjusted profit at Rs 1,108 crore while it sees sales at Rs 9,073 crore. Ebit margin is seen at 14.3 per cent. It is building in QoQ revenue growth of 1.7 per cent each in CC and dollar terms, thanks to partnership announcements in Q1, green shoots in BFSI and continued traction in hi-tech.

"We expect EBIT margin decline of 37 bps QoQ, on higher visa costs. We await management commentary on top client growth, deal conversion and timeline to reach target margin range 17-18 per cent," it said.

Antique Stock Broking sees revenue growth of 2.2 per cent in CC term, with a cross currency headwind of 20 bps. 

"Revenue growth to be led by the BFSI vertical. We expect the margin to improve by 50 bps QoQ. Deal momentum to remain strong with bookings close to $1,500 million," it said on LTI Mindtree Ltd.