LTIMindtree Q1 results: Net profit falls 1.5% YoY to Rs 1,135 crore, revenue up 5%

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LTIMindtree on July 17 reported 1.5% decrease in consolidated net profit at Rs 1,135 crore for the June quarter of FY25 as against Rs 1,152 crore in the year-ago period. However, the net profit rose 3% on sequential basis.

The IT firm's revenue from operations rose to Rs 9,142 crore in Q1FY25 from Rs 8,702 crore in Q1FY24, an increase of 5% on an annual basis.

The IT services major's revenue came above Moneycontrol's estimates of Rs 9,030 crores, while net profit came almost in line with the estimate of Rs 1,138 crores.

The EBIT margin or operating margin increased sequentially to 15 percent from 14.7 percent last quarter, in line with Moneycontrol's estimates of 15 percent. In the same quarter last fiscal, operating margins stood at 16.7 percent.

“While the environment remains unchanged, fiscal 25 started on a positive note for us with Q1FY25 revenue of $1.1 billion, registering a 2.5% QoQ and 3.5% YoY revenue growth in USD terms. Our Q1FY25 EBIT expanded to 15% and order inflow remained stable at $1.4 billion. Our top 3 industry verticals and our largest geography have performed well sequentially. This is
attributed to a measured uptick in IT spending for critical initiatives with clients balancing innovation and fiscal prudence," said Debashis Chatterjee, Chief Executive Officer and Managing Director, LTIMindtree.

The company's Board of Directors had recommended a final dividend of Rs 45 per equity share of face value Rs 1 each for the financial year ended
March 31, 2024. This was approved by the shareholders at the Annual General Meeting held on June 26, 2024 and accordingly paid before
end of the quarter.

On July 16, the company's shares closed trading 1.75% higher at Rs 5,574 apiece.

Other metrics

Total deal wins for the quarter came in at $1.4 billion, remaining flat sequentially as well as on a YoY basis.

Total headcount post Q1 stood at 81,934, an addition of 284 employees sequentially.

In Q1, LTIMindtree added 1,400 freshers.

Attrition rate on a last twelve-month (LTM) basis remained flat sequentially at 14.4 percent sequentially. But it was significantly below Q1FY24's attrition rate of 17.8 percent.