- 20 Apr 2022
- ICICIdirect Research
LTI, MINDTREE MERGER REPORTEDLY IN ADVANCED STAGES
LTIM - 6388 Change: 21.20 (0.33 %)News: According to The Economic Times, LTI & Mindtree merger talks are in advanced stage even though the timeline has not been fixed yet
Views: The demand environment continued to be strong for the foreseeable future. However, the company had a cautious view for the near term on possible headwinds in terms of high energy prices, high inflation and continued geo-political tensions. LTI indicated that attrition especially onsite continue to be at elevated levels and its impacting volumes there, and it is not expected to cool off immediatly. The company added 5,200 freshers in FY22 and looking to add 6,500 freshers for pyramid optimisation which is expected to support near term margins. Another margin lever is price hike as LTI has been getting price hikes in few pockets and they expect the benefits to continue in FY23 as well albeit in gradual manner
Impact: Neutral