LTIMindtree Reports Strong Q2 FY25 Performance with $1.6 Billion Order Bookings
LTIMindtree reported strong Q2 FY25 results with $1.6 billion in new project contracts, marking the fourth consecutive quarter of order bookings over $1.5 billion. Revenue crossed ₹10,000 crore for the first time, reaching ₹10,394.30 crore with 5.6% sequential growth. Net profit increased by 10% to ₹1,381.20 crore. Operating margins improved by 160 basis points to 15.90%. The BFSI vertical showed modest growth of 0.20%, while its revenue share decreased slightly. The company's stock has gained 18% over the past three months, outperforming the ET Infotech Index.
*this image is generated using AI for illustrative purposes only.
LTIMindtree has demonstrated strong momentum in the September quarter (Q2 FY25), delivering robust order bookings and achieving significant revenue milestones. The country's sixth largest software exporter by annual revenue reported $1.6 billion in new project contracts, marking the fourth consecutive quarter with order bookings exceeding $1.5 billion.
Financial Performance Highlights
The company achieved several notable milestones during the quarter. Revenue crossed the ₹10,000 crore mark for the first time, reaching ₹10,394.30 crore with 5.6% sequential growth. In dollar terms, revenue grew 2.3% sequentially to $1,180.10 million, representing the sixth consecutive quarter of growth.
| Financial Metric | Q2 FY25 Performance | Sequential Growth |
|---|---|---|
| Revenue (₹ crore) | 10,394.30 | +5.6% |
| Revenue ($ million) | 1,180.10 | +2.3% |
| Net Profit (₹ crore) | 1,381.20 | +10.0% |
| Operating Margin | 15.90% | +160 bps |
Order Bookings and Business Momentum
The $1.6 billion in new project contracts was driven by deals in digital transformation and artificial intelligence across major industry verticals. This strong order booking performance reflects 22.00% year-on-year growth in new orders, positioning the company well for continued growth in the second half of the fiscal year.
Segment Performance and Strategic Shifts
The banking, financial services, and insurance (BFSI) vertical, which contributes 36.00% to total revenue, showed modest sequential growth of 0.20% in the September quarter. The segment's revenue share decreased from 37.00% in the June quarter. Additionally, the contribution from top five clients declined to 25.30% from 27.30% in the previous quarter.
| Business Segment | Current Quarter | Previous Quarter | Change |
|---|---|---|---|
| BFSI Revenue Share | 36.00% | 37.00% | -100 bps |
| BFSI Sequential Growth | +0.20% | - | - |
| Top 5 Clients Share | 25.30% | 27.30% | -200 bps |
Management attributed these trends to revenue recalibration from the BFSI vertical and top five clients due to improved productivity driven by AI initiatives. The company views this as a transitional phase rather than a structural shift and expects growth in these accounts going forward.
Operational Efficiency and Margin Expansion
Operating margins improved significantly by 160 basis points sequentially to 15.90% in the September quarter. This improvement resulted from the company's efforts to streamline operations, absence of visa costs, and favorable currency movements. The enhanced operational efficiency demonstrates LTIMindtree's focus on profitability alongside growth.
Market Performance and Analyst Outlook
The stock has gained 18.00% over the past three months, outperforming the 11.00% gain in the ET Infotech Index. Analysts have responded positively to the company's performance, with Axis Securities raising its target price to ₹6,250 from ₹5,585, and Elara Securities increasing its target to ₹6,320 from ₹5,500. The stock closed at ₹6,161 on Wednesday.
Historical Stock Returns for LTI Mindtree
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.64% | -1.43% | +4.07% | +15.49% | +7.64% | +69.99% |
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