LTIMindtree (LTIM) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenues reached $1.1 billion, up 3.7% year-over-year in constant currency and 2.5% sequentially in dollar terms, with consolidated revenue for the last twelve months at $4.3 billion and a workforce of over 81,000 across 30+ countries.

• EBIT margin improved to 15%, with EBIT for the quarter at ₹13,709 million, and net margin at 12.4%.

• Order inflow for the quarter was $1.4 billion, with significant deal wins in BFSI, technology, and manufacturing, and major client wins in the US and Japan.

• AI and digital transformation are key growth drivers, with 85% of top 100 clients engaged in AI initiatives.

• Expansion in Saudi Arabia, Calgary, and Shanghai, with a joint venture announced with Aramco and strategic alliances with Adobe, AWS, Microsoft, IBM, and Salesforce.

Financial highlights

• Q1 FY25 consolidated revenue was ₹91,426 million, up from ₹88,929 million in the previous quarter and ₹87,021 million year-over-year, with USD revenue at $1,058.7 million, up 2.5% quarter-over-quarter and 3.5% year-over-year.

• EBIT for the quarter was ₹13,709 million, with an operating margin of 15%.

• PAT margin was 12.4%, with reported PAT at ₹11,351 million, up from ₹11,007 million last quarter.

• Basic EPS was ₹38.3 (consolidated), up from 37.2 in Q4 FY24.

• Cash and investment balances stood at $1.36 billion as of June 30, 2024.

Outlook and guidance

• Early signs of demand recovery, with momentum expected to continue into Q2 FY25.

• Focus remains on cost takeout and high-priority transformation projects.

• Wage hikes planned for Q3, with margin improvement targeted over coming quarters.

• Management expects continued growth in BFSI and other key verticals through the year.

• The Board approved a final dividend of ₹45 per equity share for FY24, paid before the end of the quarter.