LTIMindtree Q1 profit rises 4% to ₹1,151 cr; revenue up 14%

Net profit of software services provider LTIMindtree grew 4.1% year-on-year to ₹1,152 crore for the quarter ended June as against ₹1,106 crore in the year-ago period.

Revenue from operations jumped 13.8% year-on-year to ₹8,702 crore compared with ₹7,644 crore in the corresponding quarter last year.

In dollar terms, revenue grew 8.1% year-on-year to $1,058.70 million.

"During the first quarter of FY24, LTIMindtree delivered 8.2% YoY revenue growth in constant currency. Our key verticals BFSI, Manufacturing & Resources and Hi-Tech, Media, and Entertainment which make up 75% of our revenues performed well," says Debashis Chatterjee, chief executive officer and managing director, LTIMindtree.

The company's strategic programmes are bearing fruit and that is evident in the upward movement across LTIMindtree's client buckets, Chatterjee says.

"The order inflow continued to increase and reached $1.41 billion in this quarter. Our operational rigor helped us achieve an EBIT of 16.7% and PAT of 13.2%," he adds.

The IT company clocked an EBITDA (earnings before interest, tax, depreciation and amortisation) of ₹1,635 crore in the June quarter, up 9.5% year-on-year. EBITDA margin, however, contracted to 18.8% for the April-June quarter as against 19.5% in the year-ago period.

In terms of geography, revenues from North America in Q1 were up 10% over the previous year for the corresponding quarter, and the European region's revenues increased 7%. Revenues from the rest of the world declined by 2.6%.

LTIMindtree claims it had 723 active clients as on June 30. The number of $5 million-plus clients increased 18% year-on-year to 148, $10 million-plus clients rose 9% to 88 while $50 million-plus clients rose 3% to 13.

The company's headcount at the end of the quarter stood at 82,738. The IT firm’s trailing 12 months attrition stood at 17.8% during the June quarter compared with 20.2% in the March quarter.

The merged entity of Larsen & Toubro Infotech (LTI) and Mindtree replaced Housing Development Finance Corporation (HDFC) from the Nifty 50 index on July 13, following the amalgamation of the country's largest mortgage lender with HDFC Bank.

With a market capitalisation of around ₹1.5 lakh crore, LTIMindtree, a part of Larsen & Toubro group, is the country's fifth-largest IT services provider by market cap after Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. The IT company's parent L&T holds a 68.69% stake in the merged entity.

The Nomination & Remuneration Committee of the board of directors of the company at its meeting held today approved allotment of 8,480 equity shares of face value ₹1 each of the company, consequent upon exercise of stock options granted under the 'LTIMindtree Employee Stock Options Scheme 2015' of the company.