LTIMindtree expects merged entity to see revenue realisation of $1 billion
The company's large deal pipeline consists of 68 deals of $20 million or more, totaling $3.2 billion, of which $960 million were deals with new logos.
LTIMindtree's management team remains optimistic about the future of the company, given its strong position in the market, large deal pipeline, and commitment to driving growth and value for shareholders.
The merged entity of Larsen & Toubro Infotech and Mindtree is confident of realising revenue synergies of $1 billion and cost synergies that will drive margin expansion of 200 basis points to 19-20 percent by financial year 2027.
LTIMindtree recently hosted its first analyst meet where CEO Debashish Chatterjee addressed the company's strategy.
The company's large deal pipeline consists of 68 deals of $20 million or more, totaling $3.2 billion, of which $960 million were deals with new logos.
Additionally, 55 percent of the company's revenue comes from areas that are relatively unaffected by macroeconomic factors. However, the company acknowledges that there is rising caution among boards, leading to slower decision-making and slower deal execution.
Also Read | LTIMindtree opens new delivery centre in Poland
Regarding the exposure to Silicon Valley Bank (SVB), the company stated that SVB was a client, but its revenue contribution was minimal. Looking at the past five years, the company has achieved a compounded annual growth rate (CAGR) of 15.5 percent and expects to beat that going forward.
LTIMindtree has guided for a capital allocation of 40 percent to shareholders. The company is committed to creating value for its shareholders and believes that this allocation strategy will help achieve that goal.
Shares of LTIMindtree are trading 1.3 percent higher at Rs 4,625.
(Edited by : Hormaz Fatakia)
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