DBT Bureau
Bengaluru, 18 October 2024
IT services firm, LTIMindtree’s share price dipped more than 5% in the early morning trade as the street was disappointed with the growth outlook of the company despite a sound Q2 FY25 performance.
LTIMindtree’s shares were trading 5.52% down at Rs 6,041 in early morning trade on NSE. Nifty IT index was trading 1.46% down on an overall weak market.
In the September quarter, LTIMindtree reported a 7.7% year-on-year (YoY) rise in net profit at Rs 1251.6 crore. Its consolidated revenue grew 5.9% to Rs 9,432.9 crore YoY in the second quarter. In dollar terms, the revenue grew 4.7% YoY at $1.13 billion, and on a quarter-on-quarter basis rose by 2.8%.
“Q2 was a good quarter marked by broad-based sequential growth experienced across all our verticals and geos, helping us register a dollar growth of 2.8%. We had several multi-year deal closures, including a $200 million plus 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,” Debashis Chatterjee, CEO of LTIMindtree said.
During the second quarter, operating margins came in at 15.5%, up 50 basis points from the previous quarter.
The company added 2,504 staffers on net basis to take the total employee count to 84,438 professionals by the end of September quarter.
Total orderbook of LTIMindtree stood at $1.3 billion during this period.
“Despite the challenging environment, our growth remains steady and in line with what we had indicated in the last quarter. We are cautiously optimistic about this momentum carrying forward into Q3. However, historically, Q3 experiences seasonal headwinds as well due to furloughs and fewer billing days, which could moderate this momentum to some extent,” Chatterjee said during media interaction.
“Nevertheless, our strategic shift towards AI has resulted in a robust build-up in our deal pipeline. With strong deal wins, sustained deal traction in our key verticals, and significant hiring in Q2, including freshers, we are well-positioned as we move into the latter half of the fiscal year,” he added.
