LTIMindtree has won a greater number of cost saving-based deals but has not seen any transformation or revenue maximization-based deals being cancelled so far amid the challenging macro environment, its chief executive said.
On Friday, the L&T Group firm reported its combined quarterly results after the L&T Infotech and Mindtree merger in November. The combined entity is now India’s sixth largest in terms of revenue.
“There is no cancellation or stopping of any transformation deals. Unlike the global financial crisis (of 2008) when things came to a grinding halt, there is a tremendous shift to focus on costs. This is because people want to bring in more efficiency and take some dollars out to fund tra ..
The company’s operating margins dropped 360 basis points to 13.9%, below analyst estimates, due to one-time integration costs and extended holidays in the third quarter. It, however, expects improvements from the March-ended quarter.
In a note, brokerage Elara Capital said that the company, post-merger, had comprehensive service offerings with erstwhile L&T Infotech’s engineering capacity and Mindtree’s customer experience prowess.
“However, in our view, integration process and merger woes, such as cost, attrition, and workforce and role realignment, pose near-term risks,” said the brokerage.
Earlier this month, LTIMindtree’s president of global markets and executive board member Venu Lambu quit to pursue ..
On top-level exits, Chatterjee said: “I don’t think we can stop people from pursuing opportunities outside but also there is not too much overlap in terms of portfolios and I’m not too worried about some leadership exit.