Figurines with computers and smartphones are seen in front of LTIMindtree logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration
BENGALURU (Reuters) -India's No.6 software services exporter LTIMindtree on Wednesday marginally missed quarterly earnings estimates due to a revenue decline in its healthcare and consumer segments.
The company posted consolidated revenue of 97.72 billion rupees ($1.14 billion) for the quarter ended March 31, up 10% year-on-year, but below the analysts' average estimate of 98.57 billion rupees, according to LSEG data.
Its peers, Tata Consultancy Services and Infosys, have previously flagged a difficult year ahead, as global economic uncertainty and cautious client spending further impact the sector.
The Indian IT sector, valued at $283 billion, is facing challenges due to U.S. President Donald Trump's unpredictable tariff policies, which are causing uncertainty and delays in technology spending decisions among its major clients.
Indian IT companies expect retail and manufacturing clients to be more exposed to the tariff turmoil and may resort to cost-cutting if uncertainty persists.
The company's quarterly profit rose 2.5% to 11.29 billion rupees, while analysts, on average, were expecting a profit of 11.58 billion rupees.
Revenue at its healthcare and consumer verticals fell during the quarter by 16.2% and 1.9%, respectively. Its largest vertical, banking, financial services and insurance, grew 12%.
LTIMindtree's revenue from North America, which accounts for nearly 75% of its total, grew 6.8%, whereas its Europe market declined 1.5%.
"Our key verticals and a major geography drove our yearly growth despite an ongoing challenging macro environment," said Debashis Chatterjee, CEO, in a statement.
Its deal wins stood at $1.6 billion versus $1.68 billion in the previous quarter and $1.43 billion in the year-ago period.
The company's shares closed 5% higher ahead of the results.
($1 = 85.3880 Indian rupees)
(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Vijay Kishore)
