LTIMindtree Q1 Results Review - Data Modernisation To Lead The Recovery: Motilal Oswal

Motilal Oswal Report

LTIMindtree Ltd. reported a strong Q1 FY25 revenue growth of 2.6% QoQ/ 3.7% YoY in constant currency versus our estimate of ~1% QoQ in CC. In USD terms, revenue came in at $1.1 billion (up 2.5% QoQ/3.5% YoY), which was slightly above our estimate of $1.07 billion.

Ebitda grew 4.6% QoQ but declined 1.8% YoY to Rs 16.1 billion (in line with our estimate of Rs 15.8 billion). Profit after tax came in at Rs 11.3 billion, up 3.1% QoQ/down 1.5% YoY and below our estimate of Rs 11.6 billion. Deal wins were slightly subdued at $1.4 billion (up 0.7% QoQ).

LTIMindtree's commentary was particularly encouraging among the companies that have reported so far. Clients are finally resuming the "high-priority transformation" projects, primarily focusing on areas such as data engineering, data estate modernization, and ERP modernization.

Following a prolonged period of subdued client activity, this development sets a positive stage for pre-GenAI investments, with promising implications for FY26. Although cost-reduction initiatives remain a top priority, there is now a possibility of reinvesting technology dollars into pre-GenAI expenditures, and LTIMindtree will benefit from this uptick.

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