LTIMindtree, a leading IT services company, reported its Q1 FY25 financial results on July 17. The company saw a 1.5% year-on-year (YoY) decrease in consolidated net profit, falling to Rs 1,135 crore from Rs 1,152 crore in the same quarter of the previous fiscal year. Despite the decline in net profit, the company experienced a 3% sequential increase.
Revenue and Profit Analysis
The revenue from operations for LTIMindtree rose by 5% YoY, reaching Rs 9,142 crore in Q1 FY25, up from Rs 8,702 crore in Q1 FY24. This revenue performance surpassed Moneycontrol’s estimate of Rs 9,030 crores. The net profit aligned closely with the estimated Rs 1,138 crores.
Operating Margin and EBIT
LTIMindtree’s operating margin (EBIT) improved sequentially, increasing to 15% in Q1 FY25 from 14.7% in the previous quarter, matching Moneycontrol’s forecast of 15%. However, it was a decrease from the 16.7% operating margin reported in the same quarter last year.
CEO’s Statement
Debashis Chatterjee, CEO and Managing Director of LTIMindtree, commented on the results: “While the environment remains unchanged, fiscal 25 started on a positive note for us with Q1FY25 revenue of $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 $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.”
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Dividend Announcement
The Board of Directors recommended a final dividend of Rs 45 per equity share of face value Rs 1 each for the financial year ending March 31, 2024. This recommendation was approved by shareholders at the Annual General Meeting held on June 26, 2024, and the dividend was paid before the end of the quarter.
Market Performance
On July 16, LTIMindtree’s shares closed 1.75% higher at Rs 5,574 apiece on the NSE ahead of the earnings announcement.
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Additional Metrics
- Total Deal Wins: The total deal wins for the quarter stood at $1.4 billion, remaining flat both sequentially and YoY.
- Headcount: The total headcount at the end of Q1 was 81,934, an increase of 284 employees from the previous quarter. LTIMindtree added 1,400 freshers in Q1.
- Attrition Rate: The attrition rate on a last twelve-month (LTM) basis remained flat sequentially at 14.4%, significantly lower than the 17.8% recorded in Q1 FY24.
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