LTIM

By Bharath Rajeswaran and Haripriya Suresh

BENGALURU, Oct 7 (Reuters) - India's IT firms are set for another lackluster quarter as weak global demand, steep U.S. tariffs and trade jitters weigh on earnings, six brokerages said ahead of results.

Four forecast year-on-year revenue growth of about 6% and a 5.5% profit rise for the September quarter, despite seasonal strength from project cycles.

"September ... will be another muted quarter for IT," said Abhishek Pathak of Motilal Oswal Financial Services.

"As clients reel under macro and tariff uncertainty, there is hesitation to commit additional dollars to any large initiatives."

The projections point to continued single-digit growth, extending an eight-quarter trend as weak U.S. client spending weighs on the sector.

Indian IT firms last saw double-digit revenue growth in the March quarter of 2023, driven by digital transformation, cloud adoption and remote-work demand after the COVID-19 pandemic.

Tata Consultancy Services TCS.NS, India's biggest IT firm, will open the earnings season on October 9 with revenue expected to rise about 2% year on year, compared to up about 8% in the same period last year.

Infosys INFY.NS and HCLTech HCLT.NS are forecast to post revenue growth of about 8% and 9.5% respectively.

Citi Research expects fiscal 2026 to be the third straight sluggish year for IT, while Ambit Capital warned that weak macros and policy uncertainty could cap 2027 rebound.

U.S.-based Accenture ACN.N last month flagged no "meaningful change" in market conditions, while forecasting full-year 2026 revenue below the LSEG-compiled estimate of 5.3%.

Banking and financial services segment is expected to hold up, while manufacturing and retail face tariff and budget pressures, Systematix Institutional Equities said.

A planned $100,000 H-1B visa fee and a proposed 25% U.S. tax on outsourcing have added to industry concerns, with analysts seeing limited near-term impact but potential shifts in delivery models.

Foreign investors have offloaded 678.36 billion rupees ($7.64 billion) of IT stocks in 2025, the biggest sectoral outflow, dragging the Nifty IT index .NIFTYIT down 20% year-to-date against a 6% gain in the Nifty 50 .NSEI.

Still, Axis Securities said the correction in large- and mid-cap IT stocks has improved valuations, offering a better risk-reward even if a sharp rebound takes time.

($1 = 88.7370 Indian rupees)

(Reporting by Bharath Rajeswaran and Haripriya Suresh in Bengaluru; Editing by Nivedita Bhattacharjee)

(([email protected]; +91 9769003463;))

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, Oct 6 (Reuters) - Indian IT services company LTIMindtree LTIM.NS announced on Monday that it had won its largest-ever deal, with two sources aware of the matter pegging the size at $580 million.

The sixth largest software services exporter in India said the deal was with a leading global media and entertainment company, but did not disclose the name of the client.

The company did not immediately respond to a request for comment on the size of the deal or the name of the client.

The deal comes at a time when India's $283-billion IT sector is facing macroeconomic uncertainties, tariff-related risks and changes in U.S. immigration policy. India's IT companies will report their numbers for the September quarter starting Thursday, and analysts expect muted results.

LTIMindtree had also announced its now second-largest deal of $450 million in May, which sources said was with U.S. agribusiness giant Archer-Daniels-Midland ADM.N.

The company's shares closed 3% higher on Monday, marking their biggest daily jump in nearly five months.

LTIMindtree said it will play a role in the client's efforts "to streamline operations and modernise delivery models, incorporating automation, process optimisation, and vendor consolidation".

HFS Research CEO Phil Fersht said mid-cap companies such as LTIMindtree, Coforge COFO.NS and Mphasis MBFL.NS are showing momentum in large deal wins as "they're faster and more flexible in shaping AI-led value propositions".

"While the large caps are still optimising legacy portfolios, these mid-caps are winning new logos and expanding into outcome-based, AI-powered deals," he added.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Vijay Kishore)

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

Sept 23 - By Ira Dugal, Editor Financial News, with global Reuters staff

U.S. President Donald Trump's move to drastically hike H-1B visa fees will raise Indian technology firms' costs of hiring workers and providing services in the U.S., forcing them to rethink their operating models. It already set them back by nearly $10 billion in lost market value of their shares on Monday, the first day of trading, after the news, but the impact of the decision could go much beyond that. That's our focus this week.

And the Indian central bank is likely to opt for continuity in its inflation targeting framework. Scroll down for more on that.

THIS WEEK IN ASIA-PACIFIC

The candidates vying to be Japan's next leader

Hardest-hit Vietnam risks losing $25 billion from US tariffs, UN estimates

China cracks down on online content inciting hostility, pessimism

UK, Australia and Canada recognise Palestinian state, Israel condemns decision

Trump says 'bad things' will happen if Afghanistan does not return Bagram air base

A NEW 'MAGA' FRONT

Donald Trump has opened a new front in his fight for MAGA, or 'Make America Great Again', by driving up the fees on H-1B visas, used by foreign tech workers, most notably Indians. Train American workers instead, Trump said, making the announcement.

The decision put the tech industry squarely in the middle of the global trade and immigration tensions, leaving Indian firms rethinking their plans and policymakers calculating the wider hit from Trump's latest salvo.

The initial announcement - which suggested an annual fee of $100,000 on anyone with an H-1B visa entering the U.S. from September 21 compared with just a few thousand dollars previously - sparked panic, with companies asking workers who hold such visas and are overseas to rush back. Travellers cancelled plans and scrambled to find flights to the U.S.

India's foreign ministry said the move could disrupt families, adding that the U.S. and India have both benefited from mobility of skilled workers.

The final version, however, was watered down, imposing a one-time fee on new visas only. Nevertheless, global tech executives have pushed back, warning of rising costs for large companies and startups.

While Amazon AMZN.O uses the largest number of H-1B visas, leading Indian IT services firms are all among the top-10 sponsors of the visas. And Indians are the biggest beneficiaries of these temporary work permits.

Analysts expect the immediate financial impact on margins and profitability to be manageable but warn of rising uncertainties for the sector. Brokerage ICICI Securities pegged the average hit on earnings per share at about 6% while Jefferies estimated it at 4%-13% for different firms based on the nature of business and use of these visas. They did not specify the time period for the profit hit.

Read here to understand the impact on India's IT services model.

In response, the Nifty IT index .NIFTYIT fell 3% on Monday, wiping out nearly $10 billion in market value. The index of IT stocks has been the worst performer among sectoral indices in the Indian market so far this year, down 18% compared to a 6% gain for the benchmark Nifty 50 .NSEI.

RIPPLE EFFECTS WILL BECOME EVIDENT LATER

The wider implications of a clampdown on Indian tech workers in the U.S. will only play out over time.

With fewer such professionals welcome in the U.S., wage growth in the domestic industry could be hurt at a time when a squeeze on profitability and increased use of AI have already brought on job cuts.

The sector, which employs 5.67 million people, is a significant driver of demand in the Indian economy.

Citi analysts believe remittance flows from the U.S. could also be impacted over time but added that quantifying the impact is difficult.

Displaced workers could find a home in other countries such as Britain and South Korea, which are looking at easier visa policies to attract talent.

Some analysts believe the visa fee hike may eventually benefit India by increasing offshoring via global capability centres (GCC), used by foreign firms for a range of services from accounting to research, which have powered up the country's services exports in recent years.

The H-1B shock and increasing uncertainty "could accelerate GCC trajectory and lift GCC exports as a share of India’s total services exports over time," said Madhavi Arora, chief economist at Mumbai-headquartered Emkay Global Financial Services.

But this growth also could be short-circuited.

A bill known as the HIRE Act and introduced by U.S. Republican Senator Bernie Moreno has made the industry nervous. Any version of the bill, which proposes taxing companies that hire foreign workers over Americans, could limit the offshoring opportunity.

"If the repercussion of this (H-1B fee increase) is substantial offshoring, it might invite a reaction in terms of service tariffs or offshoring taxes," brokerage house Ambit Capital said in a note.

How will Trump's latest move impact India's tech sector and the broader economy? Write to me at [email protected].

MARKET MATTERS

India's central bank is likely to recommend maintaining the inflation target of 4% for another five years, Reuters reported.

The inflation targeting framework is up for review by March 2026.

The continuation of the target means predictability in the trajectory of interest rates but also leaves room for at least one more cut this year as headline inflation remains within the central bank's target while core inflation has been stickier.

The Reserve Bank of India had sought views on whether the target should be changed from headline inflation to core inflation and if the target band should be different from the current 2%-6%.

With most stakeholders backing the current framework, the central bank is likely to suggest its continuation to the government.

THIS WEEK'S MUST-READ

European Union nations are keeping a close watch on any wildlife export requests from India and, in particular, Vantara, a private zoo run by the philanthropic arm of a conglomerate controlled by Asia's richest family, the Ambanis.

Indian investigators cleared the sanctuary of any wrongdoing this week but its operations continue to draw global scrutiny.

Read here to know why the Spix's macaw, a vivid-blue parrot, found itself in the middle of controversy around Vantara.

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

By Haripriya Suresh and Urvi Dugar

BENGALURU, Sept 11 (Reuters) - India's massive IT sector faces a lengthy period of uncertainty with customers delaying or re-negotiating contracts while the U.S. debates a proposed 25% tax on American firms using foreign outsourcing services, analysts and lawyers said.

The sector is likely to be on the receiving end of a bill which, though unlikely to pass in its nascent form, will initiate a gradual shift in how big-name firms in the world's largest outsourcing market buy IT services, they said.

Still, with U.S. firms having to pay the tax, those heavily reliant on overseas IT services are likely to push back, setting the stage for extensive lobbying and legal battles, analysts and lawyers said.

India's $283 billion information technology sector has thrived for more than three decades exporting software services, with prominent clients including Apple AAPL.O, American Express AXP.N, Cisco CSCO.O, Citigroup C.N, FedEx FDX.N and Home Depot HD.N. It has grown to make up over 7% of GDP.

However, it has also drawn criticism in customer countries over job loss to lower-cost workers in India.

Last week, U.S. Republican Senator Bernie Moreno introduced the HIRE Act which proposes taxing companies that hire foreign workers over Americans, with the tax revenue used for U.S. workforce development. The bill also seeks to bar firms from claiming outsourcing payments as tax-deductible expenses.

The bill could not have come at a worse time for India's IT sector, which is struggling with weak revenue growth in its mainstay U.S. market as clients defer non-essential tech spending amid inflationary pressure and tariff uncertainty.

"The HIRE Act proposes sweeping changes that could alter the economics of outsourcing and significantly increase the tax liability associated with international service contracts," EY India's compliance head Jignesh Thakkar said.

In some cases, combined federal, state and local taxes could push the levy on outsourced payments as high as 60%, Thakkar said.

"While its partisan proposal may seem initially attractive, it's ultimately an artificial cost which makes organisations less competitive and profitable globally," said Arun Prabhu, partner at Cyril Amarchand Mangaldas.

Even so, the idea is gaining traction. This month, White House trade adviser Peter Navarro reposted a call from far-right activist Jack Posobiec for tariffs on services, not just goods.

"When political noise turns into regulatory risk, clients quickly insert contingencies, reopen pricing and demand delivery flexibility," said HFS Research President Saurabh Gupta.

"Clients will simply take longer to sign, longer to renew, and longer to commit transformation dollars," Gupta said.

Industry body Nasscom and IT firms Tata Consultancy Services TCS.NS, Infosys INFY.NS, HCLTech HCLT.NS, Tech Mahindra TEML.NS, Wipro WIPR.NS and LTIMindtree LTIM.NS did not respond to requests for comment on implications of the bill.

BACKLASH BECKONS

Companies are likely to lobby hard against the proposed bill and challenge it legally if passed, legal experts and industry watchers said.

"A bill like this would probably face a lot of backlash from U.S. companies that rely heavily on outsourcing, who would likely bring litigation to challenge various aspects of the bill, if it were ever to be passed into law," said Alcorn Immigration Law CEO Sophie Alcorn.

Sweeping restrictions are unlikely given the practical hurdles in enforcing the bill's provisions, experts said.

"More likely is a diluted version, with narrower provisions or delayed enforcement," said HFS Research CEO Phil Fersht.

The bill could also affect U.S. firms' global capability centres (GCCs), which have evolved from low-cost offshore back offices to high-value innovation hubs that support operations, finance, research and development.

"It will be hard to pull back from existing work, but new set-ups and expansion may get impacted," said Everest Group partner Yugal Joshi.

The proposed tax will impact the cost arbitrage advantage that is among the deciding factors when establishing a GCC, said Bharath Reddy, a partner at CAM.

"However, the lack of availability of appropriate human capital in the U.S. will continue as a problem, and which can be addressed in the near future only through outsourcing," he said.

(Reporting by Haripriya Suresh and Urvi Dugar in Bengaluru; Editing by Dhanya Skariachan and Christopher Cushing)

(([email protected];))

Adds reporters' bylines

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, Aug 8 (Reuters) - Indian outsourcing giant Tata Consultancy Services' TCS.NS decision to cut over 12,000 jobs signals the start of a broader AI-fueled trend that could end up eliminating around half a million jobs over the next two to three years from the $283 billion sector, experts said.

While TCS pegged the move to shed 2% of its workforce to skill mismatches rather than AI-related productivity gains, experts viewed the largest-ever layoffs by India's top private employer as the beginning of things to come in the labour-intensive sector. Roughly 12,200 TCS middle and senior management jobs will be lost.

The industry, which has played a crucial role in creating a middle class in India, is increasingly seeing AI being used for everything from basic coding to manual testing and customer support.

The sector employed 5.67 million people as of March 2025 and accounted for over 7% of India's GDP. It has a huge multiplier effect due to the direct and indirect jobs it creates and the cars-to-homes consumption it drives in the world's fifth-largest economy.

It has historically absorbed a majority of India's engineers but that will change as rising AI use ekes out more efficiencies and demands newer skills that many current employees lack, according to half a dozen industry veterans, analysts, and staffing firms.

"We are in the midst of a massive transition that will transform white-collar work as we know it," said Silicon Valley-based Constellation Research founder and chairman Ray Wang, echoing other experts who warned that more layoffs are likely on the cards.

The most vulnerable employees include pure people managers with minimal tech knowledge, those in charge of testing or identifying bugs and ensuring user-friendliness before delivering software to clients, and infrastructure management staff who provide basic tech support and ensure networks and servers are working well, experts said.

"About 400,000 to 500,000 professionals are at risk of being laid off over the next two to three years as their skills don't match client demands," tech market intelligence firm UnearthInsight's founder Gaurav Vasu said, adding that about 70% of those layoffs would impact workers with 4-12 years' experience.

"This (fear stemming from TCS layoffs) may hurt consumer demand for tourism, luxury shopping and even delay long-term investments such as real estate," Vasu said.

TCS and its peers Infosys INFY.NS, HCLTech HCLT.NS, Tech Mahindra TEML.NS, Wipro WIPR.NS, LTIMindtree LTIM.NS, and Cognizant CTSH.O collectively employ over 430,000 workers with 13 to 25 years of experience, according to staffing firm Xpheno.

"At the moment, they may appear like the big fat middle layer," Xpheno's co-founder Kamal Karanth said. None of the IT firms responded to Reuters queries seeking comment.

"With cost optimization being the key driver for new deal wins, clients are asking for productivity benefits - a trend which is also growing due to the rise in AI adoption. This requires IT firms to do more work with the same number of employees or the same work with fewer employees," Jefferies analyst Akshat Agarwal said in a research note.

ADAPT OR PERISH

TCS, which had more than 613,000 workers before the layoffs, said in its late July announcement it was gearing up to be "future-ready" by investing in new technologies, entering new markets, deploying AI at scale for its clients and itself, and realigning its workforce model. It did not answer Reuters queries on how many layoffs were tied to AI adoption and why it could not redeploy the affected employees.

"This is very devastating news," said a 45-year-old, Kolkata-based TCS employee affected by the latest layoffs. "It is very difficult for people my age to get new jobs."

Some others who are still at TCS fretted over its mediocre performance bonuses for senior employees in recent quarters, a new "bench policy" that limits the time somebody could be without a project regardless of personal circumstances or past performance, on-boarding delays, and the emotional turmoil caused by the layoffs.

"All these developments have tanked the morale of mid-career folks like me," a Pune-based TCS employee said.

The Indian outsourcing sector has been a key employment engine since the 1990s, offering upward mobility to millions of engineers. But revenue growth has weakened recently as its clients, stung by inflation and U.S. tariff uncertainty, defer discretionary spending and demand better cost management.

"The tech industry is at an inflection point, as AI and automation move to the very core of how businesses operate," industry body Nasscom said.

During past tech revolutions, disruption was felt at the organisational level.

"With AI, for the first time, the onus is on the individual to reinvent or re-skill themselves," former Tech Mahindra CEO CP Gurnani said.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Dhanya Skariachan and Kim Coghill)

(([email protected]))

** Indian IT services firm LTIMindtree LTIM.NS gains 0.9% to 5,062 rupees

** Co awarded Indian government's tax card upgrade project, known as PAN 2.0, Reuters reports, citing a government source aware of the matter

** The project, approved by Prime Minister Narendra Modi's administration in November 2024, is expected to go live in 18 months, the report says

** LTIM and the income tax department did not immediately respond to Reuters' requests for comment

** Stock was trading 0.2% higher before the report

** YTD, stock down over 9%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** India's LTIMindtree LTIM.NS drops ~2% to 5,095 rupees

** Stock loses most among 10 stocks on IT index .NIFTYIT, which is trading 0.3% lower

** India's no. 6 IT services firm by revenue misses first-quarter revenue estimates on slow growth in its North America business

** CLSA analysts call growth in LTIM's top five clients "anaemic"

** Adds, LTIM's underlying capabilities are not reflecting in its growth ambitions yet

** Larger rival Wipro WIPR.NS, which also reported on Thursday, beat estimates; shares up ~3%

** LTIM among six stocks on IT index rated "hold" on avg - data compiled by LSEG

** YTD, stock down ~9% vs IT index's ~15% decline

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

July 17 (Reuters) - LTIMindtree Ltd LTIM.NS:

• Q1 CONSOL NET PROFIT 12.54 BILLION RUPEES; IBES EST. 11.86 BILLION RUPEES

• Q1 CONSOL REVENUE FROM OPERATIONS 98.41 BILLION RUPEES; IBES EST. 98.51 BILLION RUPEES

Source text: ID:nBSE4lnKPm

Further company coverage: LTIM.NS

(([email protected];;))

BENGALURU, July 10 (Reuters) - India's Tata Consultancy Services TCS.NS reported lower-than-expected first-quarter revenue on Thursday as clients remained cautious about discretionary spending amid tariff-related uncertainty.

Consolidated sales at India's largest IT services firm by revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter.

Analysts, on average, expected 646.66 billion rupees, as per data compiled by LSEG.

($1 = 85.6690 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Janane Venkatraman)

(([email protected];))

June 19 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LAUNCHES BLUEVERSE AI ECOSYSTEM

Source text: ID:nBSE7NL0cX

Further company coverage: LTIM.NS

(([email protected];;))

May 12 (Reuters) - Indian software services exporter LTIMindtree LTIM.NS bagged a $450 million multi-year deal, its largest-ever, the company said on Monday.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; Mobile: +91 9591011727;))

April 23 (Reuters) - LTIMindtree Ltd LTIM.NS:

• Q4 CONSOL NET PROFIT 11.29 BILLION RUPEES; IBES PROFIT EST. 11.58 BILLION RUPEES

• Q4 CONSOL REV FROM OPS 97.72 BLN RUPEES; IBES EST. 98.57 BLN RUPEES

• BOARD RECOMMENDS FINAL DIVIDEND OF 45 RUPEES PER SHARE

Source text: [ID:]

Further company coverage: LTIM.NS

(([email protected];;))

Corrects syntax in paragraph 1

By Haripriya Suresh

BENGALURU, April 4 (Reuters) - India's $283-billion IT sector should brace for a rough year ahead as tariffs are likely to stoke inflation in its key U.S. market and force clients to cut spending, analysts said.

Although President Donald Trump did not impose direct tariffs on IT services, Indian firms are expected to feel the heat as clients, especially in manufacturing, logistics and retail sectors, adjust to the new levies.

That could slow deal cycles, delay existing projects and hurt revenue growth, analysts said. Bernstein and ICICI Securities rushed to cut their ratings on the Indian IT sector soon after the tariff announcement.

The tariffs come at a time the sector was counting on Trump to revive client confidence and discretionary spending after years of weak revenue growth.

The U.S. accounts for more than half of India's $190 billion software exports, making the sector sensitive to shifts in spending confidence among businesses in the world's largest economy. J.P.Morgan on Friday lifted global and U.S. recession odds to 60% after Trump's tariff announcement.

"With a rising risk of U.S. recession and uncertain decision-making, we think chances of fiscal 2026 being a complete washout are rising," J.P. Morgan said in a note on Friday, without giving specific numbers.

At least six analysts expect Indian IT firms to issue a "conservative" annual revenue growth forecast when quarterly results start next week.

Companies with a greater exposure to discretionary spending are expected to bear the brunt of any tariff-fueled slowdown.

"Discretionary IT spend will likely see an impact across the industry verticals. Companies to get impacted will typically be the high-growth companies in the large caps and some of the mid-caps where the exposure usually is much higher on the discretionary side," BNP Paribas analyst Kumar Rakesh said.

He added the impact of a potential slowdown could be apparent by the September quarter.

India's Nifty IT index .NIFTYIT fell 3.6% on Friday to take its losses for the week to 9.15%, the steepest weekly fall for the index in more than five years.

(Reporting by Haripriya Suresh; Editing by Dhanya Skariachan, Sonia Cheema and Saumyadeb Chakrabarty)

(([email protected];))

April 2 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - PHINIA PARTNERS WITH CO

Source text: [ID:]

Further company coverage: LTIM.NS

(([email protected];;))

March 31 (Reuters) - LTIMindtree Ltd LTIM.NS:

• ANNOUNCES STRATEGIC PARTNERSHIP WITH GOOGLE CLOUD

• PARTNERSHIP WITH GOOGLE CLOUD TO DRIVE BUSINESS TRANSFORMATION WITH AGENTIC AI

Source text: ID:nBSE4SKcvc

Further company coverage: LTIM.NS

(([email protected];;))

March 26 (Reuters) - Intellect Design Arena Ltd INEE.NS:

• INTELLECT DESIGN ARENA LTD - ANNOUNCES STRATEGIC PARTNERSHIP WITH LTIMINDTREE

• INTELLECT DESIGN ARENA - PARTNERSHIP TO TRANSFORM FINANCIAL SERVICES IN MEA AND APAC

Source text: ID:nBSE10Yc2S

Further company coverage: INEE.NS

(([email protected];))

Feb 20 (Reuters) - Thomas Cook (India) Ltd THOM.NS:

• THOMAS COOK (INDIA) - CO, SOTC, FAIRFAX, LTIMINDTREE, VOICING.AI COLLABORATE ON GENAI ADVISOR

Source text: ID:nBSE3X8nLz

Further company coverage: THOM.NS

(([email protected];))

** Indian IT index .NIFTYIT the only one among 13 major sectors trading higher, bucking broader market weakness .BO

** IT stocks up 0.24% vs a 0.5% drop in benchmark Nifty 50 .NSEI

** LTIMindtree LTIM.NS top gainer, up 2.83% after signing a multi-year contract

** Persistent Systems PERS.NS follows, with a 2.71% increase

** JP Morgan expects PERS to be the fastest growing in its coverage over FY25-27, saying it navigates tough macro environment well

** Heavyweights Infosys INFY.NS flat, while TCS TCS.NS down 0.6%

** IT index has lost 4.9% YTD, more than Nifty 50's ~3% drop

(Reporting by Ananta Agarwal in Bengaluru)

(([email protected]))

Jan 30 (Reuters) - LTIMindtree Ltd LTIM.NS:

• PARTNERS WITH FLS FOR APPLICATION SERVICES TRANSFORMATION

Source text: ID:nBSE6sDsk7

Further company coverage: LTIM.NS

(([email protected];;))

Adds analyst comment in paragraphs 5-6

By Sai Ishwarbharath B and Haripriya Suresh

Jan 24 (Reuters) - LTIMindtree LTIM.NS, India's sixth-largest IT firm, said on Friday that former president Venugopal Lambu would return as CEO after a two-year stint at Randstad Digital, to replace Debashis Chatterjee, whose term ends in November.

Lambu will join as CEO designate with immediate effect and is appointed for a five-year term, the company said in a statement. He will be based in London.

He was president of LTIMindtree's global markets business for three years until 2023 before leaving to helm the tech arm of staffing giant Randstad RAND.AS.

Debashis Chatterjee, or DC as he is colloquially known in the industry, took over the reins of LTIMindtree in November 2022 after the merger of Larsen & Toubro LART.NS firms L&T Infotech and Mindtree.

"Lambu has a reputation for being results-oriented, focusing on achieving measurable outcomes for clients and shareholders," said Gaurav Vasu, founder of research firm UnearthInsight.

"This focus on execution will help LTIMindtree deliver consistent growth and meet client expectations in an increasingly competitive IT services landscape," Vasu said.

LTIMindtree had considered Chief Operating Officer Nachiket Deshpande and President Sudhir Chaturvedi for the CEO role. Chaturvedi abruptly exited the company earlier this week.

LTIMindtree's rivals have also seen changes at the top in the past few years.

Wipro was the latest when it promoted company veteran Srini Pallia to the top job last April.

Market leader Tata Consultancy Services TCS.NS too elevated insider K Krithivasan to CEO in 2022 after Rajesh Gopinathan quit abruptly, while Infosys INFY.NS veteran Mohit Joshi took over as Tech Mahindra TEML.NS CEO in December 2023.

(Reporting by Sai Ishwarbharath B; Editing by Savio D'Souza and Janane Venkatraman)

(([email protected];))

Jan 23 (Reuters) - LTIMindtree Ltd LTIM.NS:

• UNIT LTIMINDTREE LLC DISSOLVED

Source text: ID:nBSE9y5mf2

Further company coverage: LTIM.NS

(([email protected];;))

Jan 20 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - SUDHIR CHATURVEDI, WHOLE-TIME DIRECTOR, PRESIDENT – MARKETS RESIGNS

Source text: [ID:]

Further company coverage: LTIM.NS

(([email protected];))

Adds details on forecast, analyst comment, background on peers

By Indranil Sarkar and Manvi Pant

Jan 17 (Reuters) - Shares of India's No. 2 software services exporter Infosys INFY.NS fell nearly 6% on Friday and were set for their biggest one-day decline since July 2023, as analysts raised concerns about the quality of earnings following its third-quarter report.

The stock was down 5.7% as of 11:49 a.m. IST, and was the top drag on the IT index .NIFTYIT and the benchmark Nifty 50 .NSEI, which declined 2.5% and 0.7% respectively.

Its U.S.-listed shares INFY.N fell about 6% overnight.

Infosys on Thursday raised its annual revenue forecast for the third time this financial year as its U.S. banking and retail clients warmed up to spending more on discretionary projects, echoing Tata Consultancy Services TCS.NS and HCLTech HCLT.NS.

However, analysts were concerned about the "quality" of the earnings report, which overshadowed the outlook.

The revenue growth was driven by a higher component of "third-party items" in Infosys' deal pipeline, "which drove concerns around the quality of the beat and raise", Morgan Stanley analysts said in a note.

"Given that the commentary on small deals pipeline is not showing any meaningful signs of inflection, we now assume the (industry-wide) recovery to be more gradual than before," they said.

Small deals comprise more than two-thirds of the company's total deal intake, according to BofA Global Research.

Markets are awaiting further evidence of uptick in discretionary spending, not just commentary from IT companies, said Saurabh Jain, assistant vice president of retail equities research at SMC Global Securities.

Infosys shares gained 22.5% in 2024, outperforming TCS and LTIMindtree LTIM.NS, but trailed behind HCLTech, which rose 31%.

(Reporting by Indranil Sarkar and Manvi Pant in Bengaluru, additional reporting by Anuran Sadhu; Editing by Mrigank Dhaniwala and Varun H K)

(([email protected]; +918447554364;))

Updates with commentary from CEO in paragraphs 5, 6 and 9

Jan 16 (Reuters) - India's LTIMindtree LTIM.NS on Thursday reported third-quarter revenue above estimates, helped by the execution of large deals won in previous quarters, although its profit fell on account of an uptick in expenses.

The country's sixth-largest IT firm reported a 7.1% on-year rise in consolidated revenue at 96.61 billion rupees ($1.12 billion) in the three months ended Dec. 31. Analysts, on average, expected 96.25 billion rupees revenue, per data compiled by LSEG.

The company's banking and financial services segment grew 7.5% on-year, on the back of the execution of deals from clients such as Nexi Group and South Africa-based Absa Bank over the last few months.

Going ahead, the IT sector could benefit from Donald Trump's presidency in the United States due to his pro-business policies, top industry executives said in recent weeks.

Meanwhile, LTIMindtree CEO Debashis Chatterjee told analysts on a call that political and economic uncertainties persist, and "predicting spends trending with certainty is challenging" with a new US government and potential policy changes.

While peers such as Tata Consultancy Services TCS.NS and Infosys INFY.NS signalled early signs of a pickup in discretionary spending, LTIMindtree flagged limited momentum.

LTIMindtree earns nearly 75% of its revenue from the North America market.

The company reported a 7.1% decline in profit to 10.85 billion rupees. That missed analysts' estimate of 11.39 billion rupees, as employee-related expenses rose 11%.

LTIMindtree rolled out wage hikes from Oct. 1, which also impacted its operating margin, Chatterjee said.

Its deal wins rose to $1.68 billion from $1.3 billion in the previous quarter and $1.5 billion in the year-ago period, and largely comprised of cost takeout and vendor consolidation deals.

The company's shares closed 2.4% higher ahead of the results.

($1 = 86.5740 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Varun H K and Eileen Soreng)

(([email protected];))

** Shares of IT services firm LTIMindtree LTIM.NS rise 2.7% to 5,886 rupees

** Jefferies upgrades LTIM to 'buy' from 'underperform', raises TP to 6,650 rupees from 5,450

** Attributes upgrade to the recent correction in stock price factoring in near-term earnings risks

** Prefers stocks with higher exposure to North America/BFSI (Coforge COFO.NS, Infosys INFY.NS, TCS TCS.NS, and LTIM) for stronger growth, double-digit EPS visibility over FY25-27

** Sees shift toward modernizing tech stacks in FY26, driving 7% Y/Y growth in revenue

** Analysts' avg rating on stock is "hold", same as that on peers Tech Mahindra TEML.NS, Wipro WIPR.NS, HCL Technologies HCLT.NS - data compiled by LSEG

** Median PT on LTIM is 6,540 rupees - LSEG data

** Stock fell ~11% in 2024, vs a ~22% gain in the Nifty IT index .NIFTYIT

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

Dec 16 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - LAUNCHES AI-DRIVEN CYBER DEFENSE RESILIENCY CENTER

Source text: [ID:]

Further company coverage: LTIM.NS

(([email protected];))

Dec 10 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE LTD - ANNOUNCES STRATEGIC PARTNERSHIP WITH GITHUB

Source text: ID:nBSEH10KQ

Further company coverage: LTIM.NS

(([email protected];))

Dec 6 (Reuters) - LTIMindtree Ltd LTIM.NS:

• SUBSIDIARY SYNCORDIS SARL IN FRANCE HAS BEEN DISSOLVED

Source text: ID:nBSEbxJLtB

Further company coverage: LTIM.NS

(([email protected];;))

Dec 4 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - SIGNING OF DEFINITIVE AGREEMENT BY LTIMINDTREE USA FOR INVESTMENT IN VOICING.AI

• LTIMINDTREE LTD - TO INVEST UP TO $6 MILLION IN VOICING.AI

Source text: ID:nBSE50BScR

Further company coverage: LTIM.NS

(([email protected];))