LTIMindtree Q2 Results: Net profit rises 7.7% on year to ₹1,251 crore; declares interim dividend

LTIMindtree Q2 Results: LTIMindtree on Thursday reported an 7.7% year-on-year rise in its consolidated net profit (attributable to shareholders of the company) for the fiscal’s second quarter ended September (Q2FY25) to ₹1,251 crore. The company had reported a profit of ₹1,161.8 crore in the year-ago period. Sequentially, the consolidated net profit was up 10.33%. On Thursday, LTIMindtree share price closed 0.70% higher at ₹6,403.20 apiece on the BSE. 

The Mumbai-headquartered IT services company consolidated revenue from operations stood at ₹9,432.9 crores during the quarter ended September from ₹8,905.4 crore in Q2FY24, a year-on-year jump of nearly 6%. Sequentially, the growth was by 3.2% from ₹9,142.6 crore in Q1FY25.

As per company’s exchange filing, in USD terms, the revenue was reported at $1,126.6 million, which grew by 4.7% on a YoY basis while rising by 2.8% on QoQ basis. The company’s operating margin, or EBIT, for the quarter ending in September was 15.5%.

As of September 30, 2024, the company reported a total of 84,438 employees, with an additional 2,504 joining in Q2. The attrition rate over the past 12 months was 14.5%. The number of active clients as of September 30, 2024, was 742.

“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 USD 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. 

Key Deal Wins

Some deal wins include an expansion of engagement with LTIMindtree by a US-based global manufacturing leader, which chose LTIMindtree as its preferred partner for Global Application Management & Transformation services. LTIMindtree used AI to achieve substantial OPEX savings in NextGen Operations and Software Development Life Cycle (SLDC).

Additionally, LTIMindtree has been granted a multiyear contract by a prominent Pan African financial services provider, covering digital transformation, modernization of core banking, cybersecurity, and 24/7 IT support.

Furthermore, LTIMindtree has been selected by a global financial institution to revamp its regulatory compliance by expediting the migration of legacy applications, leveraging cloud platforms, and integrating Gen AI-based 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,” said Chatterjee.

Closure Of Two Wholly Owned Subsidiaries

In an exchange filing, the company announced that the Board of Directors has authorised the closure of LTIMindtree Spain S.L. and LTIMindtree LLC, which are wholly-owned subsidiaries of the company, as part of the entity rationalisation programme.

Interim Dividend 

The board of directors have approved an interim dividend of ₹20 per equity share of par value Re 1 each.

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