{"id":163173,"date":"2024-07-18T07:40:17","date_gmt":"2024-07-18T11:40:17","guid":{"rendered":"https:\/\/44.250.171.167\/?p=163173"},"modified":"2024-07-18T07:40:19","modified_gmt":"2024-07-18T11:40:19","slug":"ltimindtree-ltd-q1-fy25-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/ltimindtree-ltd-q1-fy25-earnings-conference-call-insights\/","title":{"rendered":"LTIMindtree Ltd Q1 FY25 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from LTIMindtree Ltd (LTIM) Q1 FY25 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Market Environment<\/strong>\n<ul>\n<li>Market shows early signs of recovery despite unchanged overall conditions.<\/li>\n<li>Clients focus on efficiency through cost reduction and vendor consolidation.<\/li>\n<li>Savings are being reinvested in high-priority transformation programs.<\/li>\n<li>Foundational investments for AI are becoming more prevalent.<\/li>\n<li>BFSI and technology, media, and communications sectors are leading this trend.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Revenue and Margin Performance<\/strong>\n<ul>\n<li>Q1 revenues reached $1.1 billion, growing 3.7% in constant currency year-over-year.<\/li>\n<li>Sequential revenue growth was 2.5% in dollar terms.<\/li>\n<li>EBIT margin for the quarter was 15%, improving by 30 basis points sequentially.<\/li>\n<li>Net margin stood at 12.4%.<\/li>\n<li>Order inflow for the quarter was $1.4 billion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Industry Vertical Performance<\/strong>\n<ul>\n<li>BFSI grew 2.9% quarter-on-quarter but declined 2.7% year-on-year.<\/li>\n<li>Technology, media, and communications grew 7.9% quarter-on-quarter and 11.9% year-on-year.<\/li>\n<li>Manufacturing and resources increased 1.8% quarter-on-quarter and 10.5% year-on-year.<\/li>\n<li>Consumer business saw a slight decline of 0.7% year-on-year.<\/li>\n<li>Healthcare, life sciences, and public services grew marginally by 0.1% year-on-year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>AI Investments and Strategy<\/strong>\n<ul>\n<li>Over 85% of enterprises are looking to accelerate AI-related investments.<\/li>\n<li>Customers are moving from proof-of-concept to enterprise-wide AI deployment.<\/li>\n<li>LTI Mindtree is assisting a majority of its top 100 clients in AI and related areas.<\/li>\n<li>The company is investing in its Canvas.AI platform to enable customer scaling.<\/li>\n<li>The company organized its first AI-centric event, Ignite, across six cities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Highlights<\/strong>\n<ul>\n<li>Constant currency growth was 2.6% quarter-on-quarter and 3.7% year-on-year.<\/li>\n<li>Revenue in INR stood at 13.7 billion.<\/li>\n<li>Effective tax rate for the quarter was 25.6%, compared to 24% in Q4 FY24.<\/li>\n<li>EPS improved to 38.3% from 37.2% in Q4 FY24.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Performance<\/strong>\n<ul>\n<li>Operating margin improved to 15% from 14.7% in the previous quarter.<\/li>\n<li>Margin improvement of over 100 basis points due to absence of project cancellation impact.<\/li>\n<li>Operational efficiency contributed to margin improvement.<\/li>\n<li>Headwinds from higher visa costs (50 basis points) and increased FDNA partially offset gains.<\/li>\n<li>Net margin remained flat sequentially at 12.4%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Employee Metrics<\/strong>\n<ul>\n<li>Utilization, excluding training, increased to 88.3% from 86.9% last quarter.<\/li>\n<li>TTM attrition remained stable at 14.4%.<\/li>\n<li>Approximately 1,400 freshers were onboarded during the quarter.<\/li>\n<\/ul>\n<\/li>\n<li><strong>BFSI Transformation Projects<\/strong>\n<ul>\n<li>Banks are restarting high-priority transformation projects that were paused last year.<\/li>\n<li>These projects aim to reduce technical debt and build better systems to support businesses.<\/li>\n<li>Vendor consolidation is occurring as clients refresh their vendor landscape.<\/li>\n<li>The company has signed several new MSAs with top-tier BFS institutions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Revenue Growth and Expenses<\/strong>\n<ul>\n<li>Pass-through revenue in Q1 is similar to Q4, not significantly impacting growth.<\/li>\n<li>Other expenses have not tapered despite changes in pass-through revenue.<\/li>\n<li>The company&#8217;s top three verticals have all shown growth.<\/li>\n<li>Growth is attributed to ramping up of previously won deals and favorable positioning in vendor consolidations.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Client Spending Trends<\/strong>\n<ul>\n<li>Clients are investing in core modernization efforts to build higher resilience in IT systems.<\/li>\n<li>CIOs are focusing on resilience as a key priority in their IT strategies.<\/li>\n<li>Clients have assumed a similar economic environment for the next 18-24 months and are investing accordingly.<\/li>\n<li>There&#8217;s a shift from cost takeout to funding in-flight transformation projects more aggressively.<\/li>\n<li>High-priority programs are being restarted and continued.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Client Revenue Buckets<\/strong>\n<ul>\n<li>Top five client bucket has shown strong growth, potentially led by the top client.<\/li>\n<li>Top 5-10 client bracket has declined both quarter-on-quarter and year-on-year.<\/li>\n<li>Top 40 clients have demonstrated broad-based growth on both yearly and quarterly basis.<\/li>\n<li>The company prefers to track client performance over longer durations rather than quarter-to-quarter.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Order Intake Trends<\/strong>\n<ul>\n<li>The company is comfortable with order intake on a Last Twelve Months (LTM) basis.<\/li>\n<li>Several deals are on the cusp of being signed, moving into the next quarter (Q2).<\/li>\n<li>Short-cycle demand is prevalent, which impacts order intake differently than long-term contracts.<\/li>\n<li>Resource requests convert to billing, which then translates into order intake.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Deal Tenures<\/strong>\n<ul>\n<li>High-priority transformation projects are typically long-term projects.<\/li>\n<li>Deal tenures remain similar to previous periods.<\/li>\n<li>Clients contracting has changed, with more focus on short-cycle, resource-based demand.<\/li>\n<li>A significant large deal in the high-tech segment impacted the previous year&#8217;s Q1 order intake.<\/li>\n<li>The company observes a mix of long-term projects and short-cycle demand in current client engagements.<\/li>\n<\/ul>\n<\/li>\n<li><strong>AI Initiatives<\/strong>\n<ul>\n<li>Around 85% of top 100 clients are engaged in AI-related activities.<\/li>\n<li>Clients are investing in GPU infrastructure and data strategy for AI readiness.<\/li>\n<li>Focus is on infusing AI capabilities across all service lines.<\/li>\n<li>Demand is seen in areas like data governance, trust, and explainability.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Hiring Plans<\/strong>\n<ul>\n<li>The company plans to increase hiring in Q2 due to growing demand.<\/li>\n<li>Current utilization rates are at an all-time high.<\/li>\n<li>A healthy net headcount addition is expected in Q2.<\/li>\n<li>Hiring will be proportional to the increased demand pipeline.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Demand Pipeline<\/strong>\n<ul>\n<li>The demand pipeline has significantly increased.<\/li>\n<li>Short-cycle demand is returning, particularly in the top three verticals.<\/li>\n<li>Demand is strong in data and AI, ERP, and digital engineering service lines.<\/li>\n<\/ul>\n<\/li>\n<li><strong>EBIT Margin Outlook<\/strong>\n<ul>\n<li>The company expects margins to improve throughout the year.<\/li>\n<li>A margin improvement plan is already in place.<\/li>\n<li>Target margin levels may be deferred by a few quarters.<\/li>\n<\/ul>\n<\/li>\n<li><strong>BFSI Growth<\/strong>\n<ul>\n<li>Growth in the BFSI (Banking, Financial Services, and Insurance) sector is broad-based.<\/li>\n<li>The company is favorably positioned in some vendor consolidation efforts within BFSI.<\/li>\n<li>Current visibility and momentum suggest sustainable growth in this sector.<\/li>\n<li>Short-cycle projects are contributing to the growth in BFSI.<\/li>\n<li>The company anticipates continued opportunities in BFSI beyond Q2.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from LTIMindtree Ltd (LTIM) Q1 FY25 Earnings Concall Market Environment Market shows early signs of recovery despite unchanged overall conditions. Clients focus on efficiency through cost reduction and vendor consolidation. Savings are being reinvested in high-priority transformation programs. Foundational investments for AI are becoming more prevalent. BFSI and technology, media, and communications sectors [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[8588,10169,5075,9050],"class_list":["post-163173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-consulting","tag-earnings","tag-it-services","tag-technology-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":170056,"url":"https:\/\/alphastreet.com\/india\/ltimindtree-q1-fy26-earnings-results\/","url_meta":{"origin":163173,"position":0},"title":"LTIMindtree Q1 FY26 Earnings Results","author":"Chirag Gupta","date":"August 12, 2025","format":false,"excerpt":"Larsen & Toubro Infotech Ltd offers extensive range of IT services like application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions, and platform-based solutions to the clients in diverse industries. 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Presenting below are its Q2 FY26 earnings results. \u00a0 Q2 FY26 Earnings Results Revenue from Operations:\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"LTIMindtree Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/LTIMindtree-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/LTIMindtree-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/LTIMindtree-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/LTIMindtree-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/LTIMindtree-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/LTIMindtree-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":65860,"url":"https:\/\/alphastreet.com\/india\/key-highlights-from-infosys-infy-q1-2021-earnings-results\/","url_meta":{"origin":163173,"position":2},"title":"Key highlights from Infosys (INFY) Q1 2021 earnings results","author":"Staff Correspondent","date":"July 15, 2020","format":false,"excerpt":"Infosys (NYSE: INFY) reported earnings results for the first quarter of 2021 today. Revenues declined 0.3% to $3.12 billion. Net profit after minority interest was $558 million while diluted EPS was $0.13. The company expects revenue growth in the range of 0-2% in constant currency for fiscal year 2021 while\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Infosys reports Q1 2021 earnings results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":157827,"url":"https:\/\/alphastreet.com\/india\/ltimindtree-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":163173,"position":3},"title":"LTIMindtree Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 18, 2024","format":false,"excerpt":"Key highlights from LTIMindtree Ltd (LTIM) Q3 FY24 Earnings Concall Financial Performance Delivered resilient Q3 performance despite higher than expected furloughs and unchanged macro environment. 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Presenting below are its Q1 FY26 earnings results. \u00a0 Q1 FY26 Earnings Results Total Revenue:\u00a0\u20b9524.30 crores, up 13.4% YoY (Q1 FY25: \u20b9462.42 crores) and up 8.7% QoQ (Q4 FY25: \u20b9482 crores). Operating Income (EBITDA):\u00a0\u20b991 crores, up 10% QoQ and\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Vesuvius Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/6-20.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/6-20.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/6-20.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/6-20.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/6-20.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/6-20.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":170225,"url":"https:\/\/alphastreet.com\/india\/supriya-lifescience-q1-fy26-earnings-results\/","url_meta":{"origin":163173,"position":5},"title":"Supriya Lifescience Q1 FY26 Earnings Results\u00a0","author":"Chirag Gupta","date":"August 15, 2025","format":false,"excerpt":"Supriya Lifescience is engaged in the manufacturing of Active pharmaceutical ingredients (APIs). As of March 31, 2021, the company produces 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic. 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