LTIMindtree Q1 Results: Revenue Up 2.8% QoQ, PAT rises 3.1%

LTIMindtree recorded a revenue rise of 2.8% over the previous three months to Rs 9,142.6 crore in the quarter ended June 30, 2024, with the company seeing some green shoots of recovery in the market and deal ramp-ups starting to reflect in revenue.

Revenue on a year-on-year (YoY) basis was up 5.1%. Profit, however, on a YoY-basis dipped 1.5%, while sequentially it rose 3.1%. The margin for the quarter expanded by 30 basis points to 15%.

LTIMindtree Q1 Results: Key Highlights (QoQ)

• Revenue up 2.8% at Rs 9142.6 crore (estimate: Rs 9074.6 crore)

• Net profit up 3.1% Rs 1,135 crore (estimate: Rs 1161.2 crore)

• Ebit increased 4.8% to Rs 1371 crore (estimate: Rs 1389 crore)

• Margin expanded 30 basis points to 15% (estimate: 15.3%)

“Though the market environment remains unchanged, we see some green shoots of recovery. Clients are continuing to focus on efficiency via cost takeout or vendor consolidation. However, we are seeing early signs that they are beginning to deploy the savings and additional budgets towards taking out high-priority transformational programmes and making foundational investments in AI. We are seeing this play out more in BFSI and TMT, our largest verticals. The ramp up in deals we had talked about earlier is beginning to reflect in our revenue,” said Debashis Chatterjee, CEO and MD. 

In dollar terms, revenue stood at $1096.2 million, up 2.5% QoQ and 3.5% YoY. Net profit recorded was $136.1 million, a 2.8% QoQ rise and a 2.9% YoY fall. Going forward, the company expects to maintain the same momentum seen in Q1, although it has not provided guidance. 

LTIMindtree saw margins improve by 30 basis points this quarter. Chatterjee noted that margins are expected to improve going forward and the aim to achieve aspiration levels of 17–18% remains intact. In Q1, margin improvement was aided by operational efficiency, which was partially offset by travel and visa costs. 

An order inflow of $1.4 billion was recorded, flat both on a sequential and YoY basis. Active clients increased by 10 from last quarter at 748. 

Employee headcount saw 284 additions totaling 81934 employees, and trailing 12-month attrition was flat at 14.4%. The company said 1400 freshmen were hired in Q1. The company noted that it will continue to hire in the coming quarters, including freshers, depending on business requirements. The wage hike cycle for employees is scheduled for the later part of the year, the management said. 

Commenting on the progress in the Generative AI domain, COO Nachiket Deshpande said, “Majority of focus-oriented customers we are supporting in our AI journey; there are about 150 engagements going on in the GenAI space.” However, the CEO noted that as AI is becoming a pervasive phenomenon, revenue specifically from AI deals cannot be called out. 

LTIMindtree declared a dividend of Rs 45 per equity share with a face value of Rs 1 each for the financial year ended March 31, 2024.