LTIMindtree Q3 Results Review - Change Of Orbit: HDFC Securities
LTIMindtree delivered its first quarterly performance as a combined entity clocking quarterly revenue of $1.05 billion.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Institutional Equities
LTIMindtree Ltd. delivered its first quarterly performance as a combined entity clocking quarterly revenue of $1.05 billion and recording deal bookings of $1.2 billion.
We believe that LTIM can take market share from tier-I IT (LTIM 5% of India tier-I IT but 8-10% share of incremental growth).
LTIM expects ~$1 billion in revenue synergies over four-five years and ~200 basis points cost synergies. Our optimism on stock is supported by-
an increase in deal pipeline and a greater proportion of large deals supported by strong client mining credentials (T10 accounts have grown at more than 4% compound quarterly growth rate and $10 million plus up more than 20% in last six quarters);
strong cross-sell and up-sell opportunity supported by vertical and service-line synergies with limited client overlap; and
operational synergies supported by access to wider talent pool (86,000 plus employees), selling, general and administration optimisation and consolidation of delivery centres (India and Europe overlap).
We also believe that risk mitigation will be work in progress as the attrition risk at the senior leadership level persists (recent exit being joint President Sales).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.