LTIMindtree Q2 Results: Net profit rises by 7.7% YoY to ₹1,251 crore, revenue increases; interim dividend declared

In a stock exchange filing on October 17, the IT company attributed its performance to widespread growth across all verticals and regions, as well as robust deal momentum.

The shares of LTIMindtree closed 0.55% up at ₹6394.45 apiece.

The consolidated revenue from operations jumped nearly 6% YoY to ₹9,432.9 from ₹8,905.4 crore in Q2FY24. Sequentially, the growth in revenue was 3.2%, rising from ₹9,142.6 crore in Q1FY25.

“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 ₹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.

Deal wins of LTIMindtree

The company’s deal wins include an expanded partnership with a leading US-based global manufacturer, which selected LTIMindtree as its preferred provider for Global Application Management and Transformation services. The company made use of AI to achieve significant OPEX savings in NextGen Operations and Software Development Life Cycle (SLDC).

The company has also bagged a multiyear contract with a major Pan African financial services provider. The contract covers digital transformation, core banking modernisation, cybersecurity, and 24/7 IT support.

Moreover, the company has been chosen by a global financial institution to improve its regulatory compliance by accelerating the migration of legacy applications, utilising cloud platforms, and integrating Generative AI 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,” stated Chatterjee.

The company’s board of directors approved the closure of two wholly-owned subsidiaries, LTIMindtree Spain S.L. and LTIMindtree LLC, as part of its rationalisation programme.

An interim dividend of ₹20 per equity with a par value of Re 1 each was also approved by the board.

The company ended the quarter with more than 740 active clients. The company stated that it could see a steady expansion of its client base. It had a total of 84,438 employees as of September 3, 2024, with an increase of 2,504 in Q2.

Its EBIT (Earnings Before Interest and Tax) margin increased to 15.5% from 15 percent in the previous quarter and its free cash flow was at Rs 681.9 crore during Q2 when compared to ₹1,005.3 crore in the last quarter.