LTIMindtree Q1 net profit up 3.1% at Rs 1,135 crore

economictimes.indiatimes.com:

LTIMindtree’s net profit grew 3.1% sequentially to Rs 1,135 crore, but missed ET’s estimate at Rs 1,150 crore. Lower margins compared to corresponding quarter of last fiscal also impacted its net profit which was 1.5% down on a Y-o-Y basis.

Spotting a rare growth opportunities in North American business, LTIMindtree posted a 5.1% year-on-year (Y-o-Y) increase in its revenue at Rs 9,143 crore for the first quarter of FY25. It exceeded ET’s estimate at Rs 9,080 crore. North America revenue contribution grew to 75.1% in the first quarter of this fiscal – highest since the official merger between the erstwhile IT firms, LTI and Mindtree. On a sequential basis, revenue grew 2.8%.

Elevate Your Tech Prowess with High-Value Skill Courses

Margins at the sixth largest Indian IT service firm grew by just 30 bps (100 bps is 1%) to 15% but still remains lower from a Y-o-Y perspective. In Q1 of FY24, the firm’s margins were at 16.7%. The company added that some of the operating efficiency that led margin improvement has also been offset by higher travel related costs vis-à-vis last quarter.

Bucking trend, LTIMindtree added a little above 280 employees to its headcount in the just concluded quarter. The company also said that wage cycle review for employees will be done in Q3 of this fiscal.

Largest vertical, Banking,