LTIMindtree Q1 Result Review- Upbeat Quarter; Management Calls Out Early Demand Green Shoots: ICICI Securities

ICICI Securities Report

LTIMindtree Ltd. reported QoQ constant currency growth of 2.6% (versus our estimate/consensus of 1.7% each). Growth was mostly driven by: banking, financial services and insurance/ technology, media and communications (up 2.8%/8% QoQ). Ebit margin at 15% was a beat to our estimates and miss on consensus estimates.

LTIMindtree’s Q1 FY25 results share a few similar traits with TCS and HCLTech announced yet which include:

1. the sequential revenue growth print has beat street’s estimates;

2. headcount has been added QoQ in Q1 FY25, after past three-four quarters of net headcount reduction;

3. BFSI is seeing a turnaround (after four quarters of sequential decline for LTIMindtree);

4. better TCV to revenue conversion.

Management called out early demand green-shoots in BFSI and technology, media and communications vertical with return of short cycled projects.

We revise our FY26/27 earnings per share by <1% and maintain our FY26E target price at Rs 5,980 on a one-year forward target PE of 26 times (in-line with five-year average).

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