LTIMindtree Q2 Results Review - AI Strategy Remains The Focal Point: IDBI Capital

IDBI Capital Report

LTIMindtree Ltd. reported a ~$1127 million, up by 2.3% CC QoQ, inline with our estimates, mainly driven by broad-based verticals/geos and several multiyear deal closures in manufacturing, energy and utilities and banking, financial services verticals.

The order inflow during the quarter stood at $ 1.3 billion on the back of cost optimization projects, vendor consolidation and logo additions. Apart from the healthy order book, absence of project cancellation impact, healthy deal pipeline and synergy benefits, we expect the company to deliver better FY25E versus FY24.

Topline during the quarter was mainly driven by smaller accounts. Ebit margin during the quarter stood at 15.5%, up by 50 bps sequentially (absence of visa cost) and we believe that there is still some cushion left at the operating level.

AI strategy plays key role in contributing to topline through reimaging, creating a supportive ecosystem and democratizing.

We assume the stock under our coverage with a target price to Rs 7,000 (35 times FY26E EPS) with a Hold rating on the stock.

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