Results for LTIMindtree Q2: On Thursday, October 17, LTIMindtree said that its consolidated net profit for the second quarter of FY25, which ended in September, increased 7.7% year over year (YoY) to ₹1,251 crore. The company declared a net profit of ₹1,161.8 crore in the prior year. Sequentially, the consolidated net profit climbed by 10.33%.
In a stock exchange filing on October 17, the IT company credited strong transaction momentum and broad growth across all verticals and countries for its success.
LTIMindtree’s stock ended the day 0.55% higher at ₹6394.45 a share.
Consolidated operating revenue increased by about 6% yearly to ₹9,432.9 from ₹8,905.4 crore in Q2FY24. Revenue increased 3.2% sequentially, from ₹9,142.6 crore in Q1FY25.
“Q2 was a good quarter marked by broad-based sequential growth experienced across all our verticals and goes, helping us register a dollar growth of 2.8%. We had several multi-year deal closures, including a ₹200 million+ deal. Continued deal momentum in key verticals and significant Q2 hiring, including freshers, positions us well as we enter into the latter half of the fiscal year,” said Debashis Chatterjee, Chief Executive Officer and Managing Director.
Deal wins of LTIMindtree
Among the deals the company has closed is an extension of its collaboration with a major international manufacturer with headquarters in the US, who chose LTIMindtree as their go-to supplier for services related to global application management and transformation. Utilising AI, the business was able to save a large amount of money on NextGen Operations and Software Development Life Cycle (SLDC) OPEX.
Additionally, the business has secured a multi-year contract with a significant financial services provider in Pan Africa. The deal includes cybersecurity, core banking modernisation, digital transformation, and round-the-clock IT support.
Furthermore, a multinational financial institution has selected the company to enhance its regulatory compliance through the expeditious migration of legacy applications, the utilisation of cloud platforms, and the integration of Generative AI capabilities.
“As GenAI becomes pivotal in customer interactions, there is a noticeable trend of modernisation efforts focusing on transforming the data estate. Our robust Data practice, combined with our innovative LTIMindtree AI platform, establishes us as a significant disruptor,” stated Chatterjee.
As part of the company’s rationalisation effort, the board of directors authorised the closure of LTIMindtree LLC and LTIMindtree Spain S.L., two wholly-owned subsidiaries.
The board also approved an interim dividend of ₹20 per equity, with each equity having a par value of Re 1.
Over 740 active clients were served by the business after the quarter. The business reported that its clientele was steadily growing. As of September 3, 2024, it employed 84,438 people, up 2,504 from the previous quarter.
Its free cash flow was Rs 681.9 crore in Q2 compared to ₹1,005.3 crore in the previous quarter, and its EBIT (Earnings Before Interest and Tax) margin climbed to 15.5% from 15% in the previous quarter.
