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LTM: Modest Growth Ahead Amidst Global Headwinds
11 Jul
Summary
- Revenue and profit expected to increase slightly in the June quarter.
- West Asia conflict and travel sector slowdown may impact business.
- Analysts are watching client outlook, acquisition integration, and FY27 growth.
IT services firm LTM is poised to report modest sequential growth for the first quarter of FY27, with earnings scheduled for release on July 11. Revenue and profit are anticipated to see a slight increase, though demand in the travel sector and geopolitical issues in West Asia could temper momentum. Analysts project revenue to reach approximately Rs 11,561 crore, with EBIT around Rs 1,748 crore and profit at Rs 1,425 crore. EBIT margins are expected to remain relatively stable, hovering around 15.11% to 15.3%.
Key factors influencing LTM's performance include its exposure to West Asia and softer demand within the travel vertical. Brokerages are focused on the outlook for LTM's two largest clients, the successful integration of the Randstad acquisition, and the progress on the Central Board of Direct Taxes project. Additionally, management's guidance on FY27 growth and commentary on AI initiatives will be crucial for investors. While wage hikes may impact margins, operational efficiencies and currency tailwinds are expected to provide some offset.
