LTIMindtree signs $100 million multi-year MedTech deal with European firm

LTIMindtree Limited has announced a multi-year strategic agreement valued at $100 million with a European MedTech firm.

The company told the exchanges on Monday, February 23, that the seven-year contract involves delivering product development and support services for a leading European provider of hearing solutions. The agreement covers the MedTech company’s flagship hearing instrument brands and private labels.

Under the deal, LTIMindtree will support core wearable hearing devices, the fitting application used by hearing care professionals to configure hearing aids, and the mobile application that enables users to control their devices. The company will also manage compliance and regulatory requirements associated with MedTech product development.

LTIMindtree said it will leverage its iNXT digital transformation and innovation platform to execute the engagement. The platform is designed to help enterprises manage the convergence of physical and digital systems.

The company, part of the Larsen & Toubro Group, provides technology services across operations, transformation and business AI, with operations spanning 40 countries and a workforce of over 87,000 employees.

Earlier today, brokerage firm Jefferies cut the rating on LTIMindtree to "underperform" and slashed the price target to ₹4,300 from ₹6,175 earlier, implying a downside potential of 12% from current levels.

For the December quarter, the IT services firm reported a mixed performance, with net profit falling sharply to ₹959.6 crore,  below Street expectations of ₹1,417 crore, owing to a one-time impact from new labour codes, even as revenue and operating margins beat estimates.

Revenue stood at ₹10,781 crore, marginally above the CNBC-TV18 poll estimate of ₹10,738 crore. EBIT stood at ₹1,737 crore, compared with the poll estimate of ₹1,719 crore, while themargin improved to 16.1% from 15.9% in Q2.