LTIMindtree Reports Mixed Q1 FY25 Results: Revenue Growth Amid Profit Challenges

LTIMindtree Q1 net profit up 3.1% at Rs 1,135 crore

LTIMindtree's Q1 FY25 results show a 3.1% net profit growth but missed estimates. North America revenue contribution grew to 75.1% in the first quarter of this fiscal - highest since the official merger between the erstwhile IT firms, LTI and Mindtree. On a sequential basis, revenue grew 2.8%.LTIMindtree's net profit grew 3.1% sequentially to Rs 1,135 crore, but missed ET's estimate at Rs 1,150 crore. Lower margins compared to corresponding quarter of last fiscal also impacted its net profit which was 1.5% down on a Y-o-Y basis. Spotting a rare growth opportunities in North American business, LTIMindtree posted a 5.1% year-on-year (Y-o-Y) increase in its revenue at Rs 9,143 crore for the first quarter of FY25. It exceeded ET's estimate at Rs 9,080 crore. North America revenue contribution grew to 75.1% in the first quarter of this fiscal - highest since the official merger between the erstwhile IT firms, LTI and Mindtree. On a sequential basis, revenue grew 2.8%. Margins at the sixth largest Indian IT service firm grew by just 30 bps (100 bps is 1%) to 15% but still remains lower from a Y-o-Y perspective. In Q1 of FY24, the firm's margins were at 16.7%. The company added that some of the operating efficiency that led margin improvement has also been offset by higher travel related costs vis-à-vis last quarter. Bucking trend, LTIMindtree added a little above 280 employees to its headcount in the just concluded quarter. The company also said that wage cycle review for employees will be done in Q3 of this fiscal. Largest vertical, Banking, Financial Services and Insurance grew by 2.9% Q-o-Q. Similarly, the second and third largest vertical - Technology, Media & Communications and Manufacturing & Resources also grew sequentially by 7.9% and 1.8%, respectively. Debashis Chatterjee, chief executive officer and managing director, LTIMindtree, said, "While the environment remains unchanged, fiscal 25 started on a positive note for us." Chatterjee attributed the growth in three verticals and North America "to a measured uptick in IT spending for critical initiatives with clients balancing innovation and fiscal prudence." He added that the ramp up in deals the company spoke about in previous quarters is beginning to reflect in its revenue. "The broader macro environment has remained unchanged, and businesses continue to adopt agile strategies to cope to the economic conditions. We expect the market to follow this path for FY25 where the focus will continue to be on cost-take out, but also on select high priority transformations." The company is working on more than 150 engagements with clients in AI and GenAI. Chatterjee added "We are pushing the participation of LTIMindtree on projects with GenAI, and that's what we are focusing on." While order inflow remained stable at $1.4 billion, in terms of client metric, the firm saw a decline of one client in its category of $50 million client. Its $100 million clients remained stagnant at 2.

LTIMindtree Q1FY25 results: Net profit down by 1.5%; revenue surges 5%

LTIMindtree on Wednesday reported a consolidated net profit of ₹1,134 crore for the quarter ended June 30, 2024 -- down by 1.5 per cent from ₹1,152 crore reported by the company in the year-ago period. The revenue from operations for the reported quarter stood at ₹9,143 crore, higher by 5 per cent y-o-y compared to ₹8,702 crore reported in the corresponding quarter of the last financial year. The management attributed the increase in revenue to the ramp-up in deals seen in previous quarters. Anticipating better demand, LTI Mindtree hired 14,000 freshers in Q1FY25. The utilisation of trainees increased to 88.3 per cent from 86.9 per cent in the previous quarter. Also read: LTIMindtree launches Canvas.ai on Snowflake AI data cloud The net profit for the period attributable to shareholders stood at ₹1,134 crore. On a sequential basis, the profit after tax for the reported quarter jumped nearly 3 per cent as against ₹1,100 crore in the previous quarter. On Wednesday, the company's board of directors granted approval to set up a wholly-owned subsidiary in Brazil, with an initial investment of $1 million. Revenue for its BFSI segment witnessed 35.2 per cent y-o-y growth. Also read: LTIMindtree and SNP launch collaborative services platform MELD The Technology, Media & Communications segment growth was reported at 25.6 per cent. The Manufacturing & Resources segment growth was reported at 18.5 per cent. The Consumer Business segment growth was reported at 14.5 per cent. The company managed to crack four new deals in the quarter gone by, including one from a major US airline. A leading Japanese automotive company also awarded LTIMindtree a multi-year service desk support contract, the company filing said. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on July 17, 2024

LTIMindtree delivers 2.6% QoQ USD revenue growth in CC

EBIT Margin improves to 15% LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company, announced its consolidated results today for the first quarter ended June 30, 2024, as approved by its Board of Directors. "While the environment remains unchanged, fiscal 25 started on a positive note for us with Q1FY25 revenue of USD 1.1 billion, registering a 2.5% QoQ and 3.5% YoY revenue growth in USD terms. Our Q1FY25 EBIT expanded to 15% and order inflow remained stable at USD 1.4 billion. Our top 3 industry verticals and our largest geography have performed well sequentially. This is attributed to a measured uptick in IT spending for critical initiatives with clients balancing innovation and fiscal prudence." -Debashis Chatterjee, Chief Executive Officer and Managing Director Key financial highlights: Quarter ended June 30, 2024 In USD: - Revenue at $1,096.2 million (+2.5% Q-o-Q / +3.5% Y-o-Y) - Net profit at $136.1 million (+2.8% Q-o-Q / -2.9% Y-o-Y) In INR: - Revenue at ₹91,426 million (+2.8% Q-o-Q / +5.1% Y-o-Y) - Net profit at ₹11,351 million (+3.1% Q-o-Q / -1.5% Y-o-Y) Other highlights: Clients: - 748 active clients as of June 30, 2024 - $1 million+ clients increased by 2 on a Y-o-Y basis, total 390 - $20 million+ clients increased by 3 on a Y-o-Y basis, total 43 People: - 81,934 professionals as of June 30, 2024 - Trailing 12 months attrition was 14.4% Deal Wins A major US airline chose LTIMindtree to provide Platform Engineering & Operations Services, leveraging its global delivery footprint in the US, UK, Poland and Australia.A US-based insurance and retirement corporate has chosen LTIMindtree as their partner for development and support in the Life & New Business area. This includes accountability for managing 100+ apps in the new business portfolio.A US-headquartered company that provides data center solutions to hyperscalers, cloud and enterprise customers has awarded LTIMindtree a multi-year deal to provide PoD-based managed services in the areas of application development, data engineering, infrastructure support, testing, and ITSM.A US-headquartered digital marketing company has expanded their relationship with LTIMindtree through a strategic outsourcing deal to accelerate their digital and cost transformation journey in the areas of quality assurance, data analytics and BI, data science, field analytics, and project management.A leading global designer and manufacturer of electric domestic appliances has chosen LTIMindtree as their anchor partner to deliver Quality Assurance Services.A leading Japanese automotive company awarded LTIMindtree a multi-year service desk support contract.A US-based non-profit organization has entrusted LTIMindtree with an Infrastructure & Cybersecurity Managed Services contract. This involves migration of Data Center to Cloud along with implementation and management of security and infra tools. Partnerships LTIM has renewed its Strategic Collaboration Agreement with AWS. This partnership will see both entities work closely to enhance industry alignment across sales, solutions, and delivery. We will collaborate on developing joint solutions targeting key areas such as Generative AI, SAP, data management & migration, and modernization processes.LTIM won the AWS Champions Club UK & Ireland 2024 for the most innovative deal category. The award was bestowed at the AWS UKI Partner Summit. LTIM was nominated for 2 GenAI opportunities using technologies like Amazon Sagemaker and Amazon Bedrock.LTIM has been recognized as the 2024 Google Cloud Partner of the Year for the Manufacturing Industry Segment, highlighting its success in implementing Google Cloud technologies with specialized domain knowledge and automation.LTIM was awarded the Standard of Excellence award along with Star Insurance Group at Duck Creek's annual event Formation 2024, for simplifying the process of complex Insurance and delivering business effectiveness. LTIMindtree continues to help carriers transform and adopt new, digital AI enabled solutions with the skill, experience & security needed to achieve success. Recognitions LTIMindtree recognized as a 'Leader' in Avasant: Avasant's Multisourcing Service Integration 2023-2024.LTIMindtree recognized as a 'Leader' and Star performer in Everest Group: Duck Creek Services PEAK Matrix Assessment 2024.LTIMindtree recognized as a 'Leader' in Everest Group: Capital Markets IT Services PEAK Matrix Assessment 2024.LTIMindtree recognized as a Major Contender and Star Performer in Everest Group: Sustainability Enablement Technology Services PEAK Matrix 2024.LTIMindtree recognized as a Major Contender in Everest Group: Mainframe Services PEAK Matrix 2024.LTIMindtree recognized as a Major Contender in Everest Group: Enterprise Immersive Experience Services PEAK Matrix® Assessment 2024.LTIMindtree recognized as a Major Contender in Everest Group: Adobe Services PEAK Matrix Assessment 2024.LTIMindtree recognized as a Major Contender in Everest Group: Everest Healthcare Industry Cloud Services 2024.LTIMindtree recognized as a Major Contender in Everest Group: Guidewire Insurance PEAK Matrix Assessment 2024.LTIMindtree recognized as a Disruptor in HFS Horizons: HCP Service Providers,2024.LTIMindtree recognized as an Enterprise Innovator in HFS Horizons: Industry Cloud Service Providers, 2024.LTIMindtree recognized in 'The Forrester Wave : Continuous Automation and Testing Services, Q2 2024'. About LTIMindtree LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world. Powered by 81,000+ talented and entrepreneurial professionals across more than 30 countries, LTIMindtree -- a Larsen & Toubro Group company -- solves the most complex business challenges and delivers transformation at scale. For more information, please visit https://www.ltimindtree.com/.

LTI Mindtree Q1FY25 results: Net profit down by 1.5%; revenue surges 5%

LTIMindtree on Wednesday reported a consolidated net profit of ₹1,134 crore for the quarter ended June 30, 2024 -- down by 1.5 per cent from ₹1,152 crore reported by the company in the year-ago period. The revenue from operations for the reported quarter stood at ₹9,143 crore, higher by 5 per cent y-o-y compared to ₹8,702 crore reported in the corresponding quarter of the last financial year. The management attributed the increase in revenue to the ramp-up in deals seen in previous quarters. Anticipating better demand, LTI Mindtree hired 14,000 freshers in Q1FY25. The utilisation of trainees increased to 88.3 per cent from 86.9 per cent in the previous quarter. Also read: LTIMindtree launches Canvas.ai on Snowflake AI data cloud The net profit for the period attributable to shareholders stood at ₹1,134 crore. On a sequential basis, the profit after tax for the reported quarter jumped nearly 3 per cent as against ₹1,100 crore in the previous quarter. On Wednesday, the company's board of directors granted approval to set up a wholly-owned subsidiary in Brazil, with an initial investment of $1 million. Revenue for its BFSI segment witnessed 35.2 per cent y-o-y growth. Also read: LTIMindtree and SNP launch collaborative services platform MELD The Technology, Media & Communications segment growth was reported at 25.6 per cent. The Manufacturing & Resources segment growth was reported at 18.5 per cent. The Consumer Business segment growth was reported at 14.5 per cent. The company managed to crack four new deals in the quarter gone by, including one from a major US airline. A leading Japanese automotive company also awarded LTIMindtree a multi-year service desk support contract, the company filing said. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on July 17, 2024

LTIMindtree delivers 2.6% QoQ USD revenue growth in CC

EBIT Margin improves to 15% LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company, announced its consolidated results today for the first quarter ended June 30, 2024, as approved by its Board of Directors. "While the environment remains unchanged, fiscal 25 started on a positive note for us with Q1FY25 revenue of USD 1.1 billion, registering a 2.5% QoQ and 3.5% YoY revenue growth in USD terms. Our Q1FY25 EBIT expanded to 15% and order inflow remained stable at USD 1.4 billion. Our top 3 industry verticals and our largest geography have performed well sequentially. This is attributed to a measured uptick in IT spending for critical initiatives with clients balancing innovation and fiscal prudence." -Debashis Chatterjee, Chief Executive Officer and Managing Director Key financial highlights: Quarter ended June 30, 2024 In USD: - Revenue at $1,096.2 million (+2.5% Q-o-Q / +3.5% Y-o-Y) - Net profit at $136.1 million (+2.8% Q-o-Q / -2.9% Y-o-Y) In INR: - Revenue at ₹91,426 million (+2.8% Q-o-Q / +5.1% Y-o-Y) - Net profit at ₹11,351 million (+3.1% Q-o-Q / -1.5% Y-o-Y) Other highlights: Clients: - 748 active clients as of June 30, 2024 - $1 million+ clients increased by 2 on a Y-o-Y basis, total 390 - $20 million+ clients increased by 3 on a Y-o-Y basis, total 43 People: - 81,934 professionals as of June 30, 2024 - Trailing 12 months attrition was 14.4% Deal Wins A major US airline chose LTIMindtree to provide Platform Engineering & Operations Services, leveraging its global delivery footprint in the US, UK, Poland and Australia.A US-based insurance and retirement corporate has chosen LTIMindtree as their partner for development and support in the Life & New Business area. This includes accountability for managing 100+ apps in the new business portfolio.A US-headquartered company that provides data center solutions to hyperscalers, cloud and enterprise customers has awarded LTIMindtree a multi-year deal to provide PoD-based managed services in the areas of application development, data engineering, infrastructure support, testing, and ITSM.A US-headquartered digital marketing company has expanded their relationship with LTIMindtree through a strategic outsourcing deal to accelerate their digital and cost transformation journey in the areas of quality assurance, data analytics and BI, data science, field analytics, and project management.A leading global designer and manufacturer of electric domestic appliances has chosen LTIMindtree as their anchor partner to deliver Quality Assurance Services.A leading Japanese automotive company awarded LTIMindtree a multi-year service desk support contract.A US-based non-profit organization has entrusted LTIMindtree with an Infrastructure & Cybersecurity Managed Services contract. This involves migration of Data Center to Cloud along with implementation and management of security and infra tools. Partnerships LTIM has renewed its Strategic Collaboration Agreement with AWS. This partnership will see both entities work closely to enhance industry alignment across sales, solutions, and delivery. We will collaborate on developing joint solutions targeting key areas such as Generative AI, SAP, data management & migration, and modernization processes.LTIM won the AWS Champions Club UK & Ireland 2024 for the most innovative deal category. The award was bestowed at the AWS UKI Partner Summit. LTIM was nominated for 2 GenAI opportunities using technologies like Amazon Sagemaker and Amazon Bedrock.LTIM has been recognized as the 2024 Google Cloud Partner of the Year for the Manufacturing Industry Segment, highlighting its success in implementing Google Cloud technologies with specialized domain knowledge and automation.LTIM was awarded the Standard of Excellence award along with Star Insurance Group at Duck Creek's annual event Formation 2024, for simplifying the process of complex Insurance and delivering business effectiveness. LTIMindtree continues to help carriers transform and adopt new, digital AI enabled solutions with the skill, experience & security needed to achieve success. Recognitions LTIMindtree recognized as a 'Leader' in Avasant: Avasant's Multisourcing Service Integration 2023-2024.LTIMindtree recognized as a 'Leader' and Star performer in Everest Group: Duck Creek Services PEAK Matrix Assessment 2024.LTIMindtree recognized as a 'Leader' in Everest Group: Capital Markets IT Services PEAK Matrix Assessment 2024.LTIMindtree recognized as a Major Contender and Star Performer in Everest Group: Sustainability Enablement Technology Services PEAK Matrix 2024.LTIMindtree recognized as a Major Contender in Everest Group: Mainframe Services PEAK Matrix 2024.LTIMindtree recognized as a Major Contender in Everest Group: Enterprise Immersive Experience Services PEAK Matrix® Assessment 2024.LTIMindtree recognized as a Major Contender in Everest Group: Adobe Services PEAK Matrix Assessment 2024.LTIMindtree recognized as a Major Contender in Everest Group: Everest Healthcare Industry Cloud Services 2024.LTIMindtree recognized as a Major Contender in Everest Group: Guidewire Insurance PEAK Matrix Assessment 2024.LTIMindtree recognized as a Disruptor in HFS Horizons: HCP Service Providers,2024.LTIMindtree recognized as an Enterprise Innovator in HFS Horizons: Industry Cloud Service Providers, 2024.LTIMindtree recognized in 'The Forrester Wave : Continuous Automation and Testing Services, Q2 2024'. About LTIMindtree LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world. Powered by 81,000+ talented and entrepreneurial professionals across more than 30 countries, LTIMindtree -- a Larsen & Toubro Group company -- solves the most complex business challenges and delivers transformation at scale. For more information, please visit https://www.ltimindtree.com/.

LTIMindtree revenue rises 2.6% in June quarter

Bengaluru: LTIMindtree's revenue rose 2.6% in constant currency in the June quarter, riding on broad-based growth including an uptick in BFSI, technology businesses, and large deals. Its topline grew 3.7% year-on-year in constant currency. "The next quarter will be the same as this one, but it is difficult to call out a forecast for the rest of the year. The geopolitical environment is unchanged.What has changed is that savings from being efficient are being utilized for high-priority projects by our clients," Debashis Chatterjee, chief executive officer of LTIMindtree, said. "We expect the market to follow this path for FY25, where the focus will continue to be on cost takeout but also on select high-priority transformations." The company said the broader macro environment has remained unchanged, and businesses continue to adopt agile strategies to cope with the economic conditions. Its margins rose marginally to 15% in the June quarter versus 14.7% in the March quarter. While LTIMindtree did not give out guidance on the margins, it mentioned that work is in progress to achieve a reasonable band. The management said that companies, especially in BFSI, media, and technology, are making their foundational investments in AI. LTIMindtree has 150 ongoing engagements in AI and is looking to tap into his segment. "As clients continue building their AI momentum and graduating AI beyond the PoC stages, we are well-positioned to capitalize on this opportunity. We will remain close to our clients and adapt if there is any significant change in the business environment," he said. On the people front, LTIMindtree made a modest net addition of 284 employees, taking the total headcount to 81,934. LTIMindtree has onboarded 1,400 freshers in the April-June quarter and plans to add more freshers from colleges.