LTIMindtree (LTIM) Q2 24/25 earnings summary

Executive summary

• Achieved broad-based sequential growth across all verticals and geographies, with several multiyear deal closures in manufacturing, energy, utilities, and BFS sectors.

• Revenue for the last twelve months reached approximately $4.4 billion, with a global presence in over 30 countries and more than 84,000 employees serving 700+ clients.

• Q2 FY25 saw continued profitable growth, positioning the company as a digital engineering powerhouse.

• Secured a $200M+ TCV deal over five years and opened 22 new client logos in the quarter.

• Strategic pivot to an AI-first approach, with significant investments in AI platforms, workforce training, and ecosystem partnerships.

Financial highlights

• Q2 revenue reached $1.16B, up 2.8% sequentially and 4.7% year-over-year in USD terms; constant currency growth was 3.3% QoQ and 4.4% YoY.

• EBIT margin improved by 50 bps to 15.5% sequentially, mainly due to absence of visa costs.

• Net profit margin at 13.3%; PAT rose to INR 1,252 crores from INR 1,135 crores in the previous quarter.

• Basic EPS was INR 42.3, up from INR 38.3 in Q1.

• Q2 order inflows (TCV) stood at $1.3B.

• Cash and investment balances at $1.43B (INR 11,974 crores).

• Return on equity for the quarter was 23.8%.

• Q2 FY25 revenue was $1,096.2 million, up 2.8% quarter-over-quarter and 4.7% year-over-year in INR terms.

• EBIT for Q2 FY25 was ₹14,231 million, up 6.4% sequentially and 5.9% year-over-year; EBIT margin improved to 15.5%.

• PAT for Q2 FY25 reached ₹12,516 million, up 10.3% quarter-over-quarter and 7.7% year-over-year; PAT margin rose to 13.3%.

• Consolidated revenue from operations for Q2 FY25 was ₹94,329 million, up from ₹91,426 million in Q1 FY25 and ₹89,054 million in Q2 FY24.

• Net profit after tax for Q2 FY25 stood at ₹12,516 million, compared to ₹11,351 million in Q1 FY25 and ₹11,623 million in Q2 FY24.

• Earnings per share (basic) for Q2 FY25 was ₹42.25, up from ₹39.27 in Q2 FY24.

Outlook and guidance

• Cautiously optimistic about Q3 momentum, but expect seasonal headwinds from furloughs and wage hikes to pressure margins.

• Furloughs anticipated to return to normal levels, unlike the elevated impact last year.

• Wage hikes in Q3 expected to impact margins by approximately 200 bps, partially offset by operational efficiencies.

• Margin improvement journey elongated due to external environment; focus remains on maintaining margins until double-digit growth returns.

• Results are in compliance with Indian Accounting Standards and have been reviewed by the Audit Committee and Board.