On October 18, 2023: LTIMindtree Limited (BSE, NSE: LTIM) announced its Q2 FY 2023-24 financial results amid robust revenue growth at a YoY level and a healthy order inflow of more than USD 1 billion.
Table of Content
Important Financial Highlights
The key financial highlights of LTI Mindtree are as follows:
- In USD, the company’s Revenue stood at $1,075 million portraying a growth of 1.6% QoQ and 5.2% YoY. The Net Profit was at $140.4 million showing growth of 0.2% on a QoQ basis, but a decline of 5.0% YoY.
- In INR, the company’s Revenue was at ₹89,054 million displaying a QoQ growth of 2.3%, and a YoY decline of 2.2%. The Net Profit was at ₹11,623 million with a QoQ growth of 0.9% and a decline of 2.2% on a YoY level.
Additional Read: Q2 Results Dashboard
Other Highlights that Matter
Apart from financial results, other key features of the company’s Q2 results are worth mentioning:
- As of the end of Q2 (September 2023), the company has 737 active clients.
- $10 million+ clients went up by 13 on a YoY level, totalling 90.
- $20 million+ clients rose by 3 on a YoY basis with a total of 41.
- $50 million+ clients went up by 3 on a YoY level with a total of 14.
- As of the close of Q2, the company has 83,532 professionals in its employ.
- The trailing attrition for 12 months stands at 15.2%.
The Management’s Take on Q2 Results
The MD and CEO of LTIMindtree, Debashis Chatterjee, has insights to offer on the second quarter results, the gist of which are mentioned below:
- Q2 results are highlighted by healthy growth in Revenue (5.2% with regard to USD).
- The Operating Margin is also robust at 16%. This is in spite of hikes in wages across the company.
- LTIMindtree’s impressive Q2 results exhibit unmatched overall performance considering the overall challenge in the market environment. The management credits the performance to the company’s capabilities and its stringent execution practices.
- The order inflow at USD 1.3 billion (20% rise YoY) and the growth over client bands speaks volumes about the health of the company’s client relationships, ability to address client requirements, and strong delivery systems.
Additional Read: LTIMindtree Share Price
Winning Deals
LTI Mindtree has been fortunate to make many winning deals in the last quarter. The key ones are mentioned below:
- LTIMindtree has been selected by one of the leading global semiconductor manufacturers to be their partner as part of their ongoing digital transformation. This includes the modernisation of the partner company’s SAP application arena, streamlining business operations, enriching user experiences, and delivering modern digital operations over SAP and SAP S/4HANA Cloud Applications and Solutions.
- A top US-based retailer of apparel (owning over 90 stores) has chosen LTIMindtree for the multiple-year management of services for Infrastructure and Application Services.
- A fast-food restaurant in the US has chosen LTIMindtree as a partner for Digital Transformation. LTIMindtree will be a provider of Data and Analytics, Application Development and Support, Assurance, and Quality Engineering Services.
- A US-based retirement and insurance enterprise has awarded LTIMindtree a multiple-year maintenance and application development programme. This would include 500+ applications spread over various services such as Testing, Development, and Maintenance.
A Vital Collaboration
The company has achieved a crucial partnership with Informatica, a world leader in the Data Management and MDM sphere. This is a top-tier GSI partnership that allows LTIMindtree to empower other enterprises to achieve excellence in their data operations offering systems of scale and speed by building contemporary cloud data platforms.
Recognition that Counts
The company has witnessed substantial acknowledgements and recognitions in Q2. These are featured below:
- LTIMindtree has been recognised as a “Leader” in the IT Services PEAK Matrix Assessment of 2023 of the Everest Group. For the same group of companies, LTIMindtree has earned the recognition of “Star Performer” and “Major Contender” as well. Additionally, LTIMindtree has achieved recognition in different areas of the Everest Group’s segments in Europe and North America.
- LTIMindtree has been featured in the Commerce Services Landscape 2023 by Forrester.
- LTIMindtree has earned the status of “Visionary” in Gartner’s 2023 Magic Quadrant for Public Cloud IT Transformation Services (registered trademarks of Gartner, Inc. and affiliates).
Noteworthy Announcement
The Board of Directors of LTIMindtree has given its approval for the issuance of an interim dividend of ₹20 per equity share of the value of ₹1 per share.
Financial Data
The following Q2 financial data is presented in the tables below (in USD Million and INR Million, respectively, except where percentages are indicated):
In USD Million
| Revenue USD Million | Q2 FY 2022-23 | Q1 FY 2023-24 | Q2 FY 2023-24 | QoQ Growth % | YoY Growth % |
| Revenue USD Million | 1,021.9 | 1,058.7 | 1,075.5 | 1.6% | 5.2% |
| Revenue in CC | – | – | – | 1.7% | 4.4% |
In INR Million
| Financial Metrics | Q2 FY 2022-23 | Q1 FY 2023-24 | Q2 FY 2023-24 | QoQ Growth % | YoY Growth % |
| Revenue | 82,278 | 87,201 | 89,054 | 2.3% | 8.2% |
| EBITDA Margin | 19.9% | 18.8% | 18.3% | – | – |
| PAT | 11,890 | 11,523 | 11,623 | – | – |
| ROE | 32.6% | 26.8% | 26.9% | – | – |
Note: With regard to industry-specific revenue earning, the company has earned the most in the industry of Banking, Insurance, and Financial Services with a Q2 FY 2023-24 Revenue at USD growth of 36.5%.
About LTIMindtree
Enshrined in the vision of LTIMindtree is a single purpose: that of empowering organisations to meet the ever-evolving dynamics of the digital business landscape of current times. The altering global landscape poses a challenge for most companies and this is where LTIMindtree enters the picture. At LTIMindtree, the boundaries of what can be done to meet the challenges of clients and partners are constantly being pushed. The company strives to drive companies to become sustainable with technology at the forefront and get rid of any barriers to meeting goals. With this perspective, the company, now with an 82,000-strong employee base and an equally healthy 700+ client base, leverages waste management, renewable energy, and the targeted practices of a circular economy with a view to ensuring a safe and healthy business. The company is spread across some 30 countries and is essentially in the business of offering digital solutions and IT services. It is a subsidiary of the giant, Larsen & Toubro.
Source: https://www.ltimindtree.com/investors/financial-results/
