LTIMindtree announced its Q2 FY25 results on Thursday, showcasing a consolidated net profit of ₹1,251 crore, reflecting a year-on-year increase of 7.7% from ₹1,161.8 crore reported in the same period last year. Sequentially, the profit grew by 10.33%. The company’s share price closed 0.70% higher at ₹6,403.20 on the BSE.

The Mumbai-based IT services provider posted consolidated revenue from operations of ₹9,432.9 crore for the quarter, up nearly 6% from ₹8,905.4 crore in Q2 FY24, and a 3.2% increase from ₹9,142.6 crore in Q1 FY25.

In USD terms, revenue was $1,126.6 million, representing a 4.7% year-on-year growth and a 2.8% sequential rise. The company reported an operating margin of 15.5% for the quarter.

As of September 30, 2024, LTIMindtree employed a total of 84,438 staff, with an increase of 2,504 in Q2. The attrition rate for the past year stood at 14.5%, while the company served 742 active clients.

Debashis Chatterjee, Chief Executive Officer and Managing Director, noted, “Q2 was a strong quarter marked by broad-based sequential growth across all our verticals, leading to a dollar growth of 2.8%. We secured several multi-year deals, including one worth over $200 million. Our continued deal momentum and significant hiring in Q2, including freshers, position us well for the latter half of the fiscal year.”

Key deal wins

The firm highlighted several significant contract wins, including an expanded partnership with a US-based global manufacturing leader for Global Application Management and Transformation services. By leveraging AI, LTIMindtree achieved substantial operational expenditure savings in NextGen Operations and Software Development Life Cycle (SDLC).

Additionally, a multiyear contract was secured with a prominent Pan-African financial services provider, focusing on digital transformation, core banking modernisation, cybersecurity, and 24/7 IT support. Furthermore, LTIMindtree was chosen by a global financial institution to enhance its regulatory compliance by accelerating the migration of legacy applications, utilising cloud platforms, and integrating Generative AI capabilities.

Chatterjee remarked, “As Generative AI becomes crucial in customer interactions, we see a significant trend towards modernising data estates. Our robust Data practice, paired with the innovative LTIMindtree AI platform, positions us as a key disruptor.”

Closure of wholly owned subsidiaries

The company’s Board of Directors has authorised the closure of LTIMindtree Spain S.L. and LTIMindtree LLC, both wholly-owned subsidiaries, as part of a rationalisation programme.

Interim dividend

The board has also approved an interim dividend of ₹20 per equity share of par value Re 1 each, providing a return to shareholders amidst the firm’s positive performance.