&w=3840&q=100)
LTIMindtree Q1 steady; analysts see signs of revival under new leadership
While the company's top line marginally missed Bloomberg estimates of ₹9,855.4 crore, the bottom line outperformed expectations pegged at ₹1,194 crore.
Brokerages viewed the results as largely in-line, with positive commentary on margin expansion, deal wins, and a visible shift in momentum under the new leadership of CEO and MD Venu Lambu.
"We had a promising start to the year delivering broad-based growth, expanding margins, and making significant progress on our strategic priorities," Lambu said, attributing the gains to initiatives like the Fit4Future programme, sales transformation, and focus on AI. "While the macroeconomic environment remains challenging, I'm confident that our disciplined execution and unwavering client focus will continue to drive our performance," he added.
In dollar terms, revenue stood at $1,153.3 million, reflecting a growth of 2 per cent Q-o-Q and 5.2 per cent Y-o-Y. Constant currency (CC) growth was 0.8 per cent Q-o-Q. Ebit margin expanded by 50 basis points to 14.3 per cent, despite seasonal visa costs and forex headwinds, aided by 100bps cost savings from Fit4Future - a programme aimed at improving operational efficiency.
Brokerage views
Analysts at Emkay Global called the operating performance 'mostly in-line', noting that growth was broad-based across verticals including Consumer, Healthcare, Life Sciences, Public Services, and BFSI.
The brokerage highlighted the resilience in deal momentum, with total contract value (TCV) of $1.6 billion, marking the third consecutive quarter of over $1.5 billion in order inflows. The book-to-bill ratio stood at about 1.4x.
Emkay sees continued demand for cost-saving initiatives, vendor consolidation, and tech modernisation amid macro uncertainties. It marginally tweaked FY26–28E EPS estimates by 0-1 per cent and maintained an 'Add' rating with a target price of ₹5,400, valuing the company at 26x FY27E EPS.
Nuvama Institutional Equities echoed a similar tone, describing the results as 'decent' and in-line with its expectations. Ebit margin improvement and consistent deal wins reflected operational discipline. TCV rose 1.9 per cent Q-o-Q and 16.4 per cent Y-o-Y to $1.63 billion.
The brokerage noted that LTIM has faced multiple headwinds in recent years – both macro and micro – but sees early signs of a turnaround under Lambu's leadership.
"The company now appears to be turning the corner under the new CEO... targeting industry-leading growth and improved margins," it said in its note.
Thus, Nuvama has upgraded its valuation multiple to 30x FY27E PE (from 25x), and maintained a 'Buy' rating with a revised target price of ₹6,200 (earlier ₹5,200).
Client, people metrics
The company had 741 active clients as of June 30, 2025. Notably, the number of $1 million+ clients grew by 14 Y-o-Y to 404, while $5 million+, $10 million+, and $50 million+ clients rose by 11, 3, and 2, respectively.
On the people front, LTIMindtree had 83,889 professionals, with trailing 12-month attrition at 14.4 per cent. Utilisation excluding trainees stood at 88.1 per cent.
With margin tailwinds from efficiency programmes, strong order book, and optimism around demand recovery, analysts believe LTIMindtree is gradually regaining investor confidence, particularly under the focused leadership of Venu Lambu.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Boeing Defense Workers Reject Contract in New Labor Turmoil
(Bloomberg) -- Boeing Co. faces the risk of a strike at its St. Louis defense hub after union workers rejected a contract offer that would boost their wages by 20% over four years. The International Association of Machinists and Aerospace Workers Local 837, which represents 3,200 Boeing defense workers in Missouri and Illinois, voted overwhelmingly against the new terms Sunday. The Boeing proposal 'fell short of addressing the priorities and sacrifices' of the company's skilled workforce, the union said in a statement. 'Our members are standing together to demand a contract that respects their work and ensures a secure future.' While the present contract expires at 11:59 p.m. Central Time on Sunday, management still has a chance to win over rank-and-file members by sweetening its offer during a seven-day 'cooling off' period. If that's unsuccessful, IAM Local 837 workers will walk off the job and shut down manufacturing in Boeing's military aircraft hub. The aerospace manufacturer is seeking to avoid another labor standoff after a strike by a Seattle-based Machinists union crippled manufacturing at its commercial jet factories for more than two months last year. Boeing could not be immediately reached for comment. Any labor strife would be costly for Boeing's defense division, which hasn't earned an annual profit since 2022 and is in the middle of a turnaround. A strike would shut down assembly lines for Boeing's F-15 and F/A-18 fighter jets, T-7A trainer, MQ-25 drone refueler and other weapons systems. The labor uncertainty will be a focus for analysts when Boeing reports quarterly earnings on Tuesday. It's also a bellwether as GE Aerospace launches contract negotiations with a separate IAM local on Sunday. St. Louis workers last went on strike in 1996 and don't have a history of activism, unlike Boeing's unions in the Pacific Northwest, according to Scott Mikus, an analyst with Melius Research. Union members initially rejected management's offer during the last negotiation with Boeing in 2022, before accepting a three-year deal with a 14% general wage increase and cost-of-living adjustments. While Puget Sound labor leaders endorsed Boeing's initial offer last year, they were rebuffed by rank-and-file members embittered by an earlier 10-year contract that stripped away pensions and locked in low wage increases while inflation soared. The lengthy strike squeezed the company's working capital and spurred Boeing to sell equity worth almost $24 billion. --With assistance from Bill Haubert. (Updates with comments from labor union in third paragraph, attempt to reach Boeing in fifth paragraph.) More stories like this are available on
&w=3840&q=100)
Business Standard
3 hours ago
- Business Standard
EM debt hedge funds eye safeguards as world-beating rally blooms
Hedge funds dedicated to emerging-market debt are increasingly turning to risk-mitigating strategies to ensure they lock in double digit gains as a broad rally in developing nation assets deepens. After a banner first half of the year, hedge funds targeting EM debt have returned nearly 13 per cent on an annual basis — more than their peers positioned in any other asset class, according to data based on Bloomberg indexes. The latest global financial flows data shows the asset class remains thriving and the extra yield investors demand to hold the sovereign debt of developing nations over US Treasuries just hit a 15-year low. Such tight pricing, along with uncertainty over US policies and global conflicts, is pushing hedge funds to curb risks as they ride the historic rally. The funds do this by swapping longer-maturity bonds in their portfolios for less risky shorter-dated ones. They also focus on higher-rated debt and the most-liquid securities while keeping an ample cash pile. 'Do you just want to be massively long on credit on these valuations? I'd say probably not,' said Anthony Kettle, who co-manages BlueBay Emerging Market Unconstrained Bond Fund with Polina Kurdyavko and Brent David. 'Having a little bit of dry powder evidently makes sense, and also running elevated cash levels.' To be clear, Kettle said, there's still a 'decent environment' to gain additional returns as funds become more selective and can profit from both rising and falling asset prices, unlike index-based investors. The $784-million BlueBay fund has returned 17 per cent over the past 12 months. Investors have taken advantage of EM inflows stoked by increased interest for alternative assets amid US policy unpredictability, which has also weakened the dollar. While many developing countries have come out of distressed debt levels as sentiment improved, further risks include another Iran-Israel flare up and potential additional increases in US tariffs, including on the buyers of Russian energy. President Donald Trump's administration has caused a 'breakdown of the traditional safe haven correlations' by shaking up the post-Cold War world order, creating an 'unusual and unpredictable' environment, said Demetris Efstathiou, the chief investment officer of Blue Diagonal EM Fixed Income Fund. 'It is very hard to predict what they will do next with tariffs, and on top of that you have ongoing wars,' Efstathiou said. His fund is 'very conservatively' positioned with shorter-maturity bonds and he avoids weak credits to protect the portfolio in the event of a global slowdown and market downturn. He has increased holdings of AAA- and AA-rated EM sovereigns along with less-indebted countries with large domestic markets like Brazil, Turkey and Mexico. EM-dedicated bond funds have received $31 billion in inflows year-to-date, with positioning increased in each of the last 14 weeks as global markets recalibrate after an era of US dominance. A near-record $5.7 billion piled into the asset class in the week though July 23, according to EPFR Global data provided by economists at Bank of America Corp. For some, flows of such a magnitude signal that EM debt is alrdy predicting the best-case scenario. 'The market is now priced for a Goldilocks scenario with the risk of a severe recession receding significantly and expectations' of one or more rate cuts by the Federal Reserve, the $847 million Enko Africa Debt Fund said in a letter to clients. Managed by Alain Nkontchou, the Africa-specific hedge fund has returned 24 per cent over the past year. Nevertheless, the expected volatility means that traditional buy-to-hold trades may not necessarily succeed and that hedge funds will prioritize holding more liquid assets to ensure an easier exit in case sentiment turns, according to ProMeritum Investment Management LLP, a $700-million fund that invests in developing markets outside China. 'Liquidity management will be critical in the second half of the year because of an unpredictable environment and geopolitical risks,' said Evgueni Konovalenko, managing partner and head of strategy at the firm. Such a focus is needed 'to take advantage of both short and long positions with sudden policy changes and a daily barrage of headlines.' What to Watch: Markets will look out for any trade talks with the US ahead of the Aug 1 deadline for Trump's latest tariffs to take effect China manufacturing and non-manufacturing PMI; second-quarter GDP data for Taiwan and Mexico, South Korea export data Brazil, Chile and South Africa central bank meetings on benchmark interest rates; South Africa may cut rates by another 25 basis points to 7 per cent, despite the likely rise in inflation later this year. (With assistance from Jorgelina do Rosario)
Mint
7 hours ago
- Mint
EM Debt Hedge Funds Eye Safeguards as World-Beating Rally Blooms
(Bloomberg) -- Hedge funds dedicated to emerging-market debt are increasingly turning to risk-mitigating strategies to ensure they lock in double digit gains as a broad rally in developing nation assets deepens. After a banner first half of the year, hedge funds targeting EM debt have returned nearly 13% on an annual basis — more than their peers positioned in any other asset class, according to data based on Bloomberg indexes. The latest global financial flows data shows the asset class remains thriving and the extra yield investors demand to hold the sovereign debt of developing nations over US Treasuries just hit a 15-year low. Such tight pricing, along with uncertainty over US policies and global conflicts, is pushing hedge funds to curb risks as they ride the historic rally. The funds do this by swapping longer-maturity bonds in their portfolios for less risky shorter-dated ones. They also focus on higher-rated debt and the most-liquid securities while keeping an ample cash pile. 'Do you just want to be massively long on credit on these valuations? I'd say probably not,' said Anthony Kettle, who co-manages BlueBay Emerging Market Unconstrained Bond Fund with Polina Kurdyavko and Brent David. 'Having a little bit of dry powder evidently makes sense, and also running elevated cash levels.' To be clear, Kettle said, there's still a 'decent environment' to gain additional returns as funds become more selective and can profit from both rising and falling asset prices, unlike index-based investors. The $784-million BlueBay fund has returned 17% over the past 12 months. Investors have taken advantage of EM inflows stoked by increased interest for alternative assets amid US policy unpredictability, which has also weakened the dollar. While many developing countries have come out of distressed debt levels as sentiment improved, further risks include another Iran-Israel flare up and potential additional increases in US tariffs, including on the buyers of Russian energy. President Donald Trump's administration has caused a 'breakdown of the traditional safe haven correlations' by shaking up the post-Cold War world order, creating an 'unusual and unpredictable' environment, said Demetris Efstathiou, the chief investment officer of Blue Diagonal EM Fixed Income Fund. 'It is very hard to predict what they will do next with tariffs, and on top of that you have ongoing wars,' Efstathiou said. His fund is 'very conservatively' positioned with shorter-maturity bonds and he avoids weak credits to protect the portfolio in the event of a global slowdown and market downturn. He has increased holdings of AAA- and AA-rated EM sovereigns along with less-indebted countries with large domestic markets like Brazil, Turkey and Mexico. EM-dedicated bond funds have received $31 billion in inflows year-to-date, with positioning increased in each of the last 14 weeks as global markets recalibrate after an era of US dominance. A near-record $5.7 billion piled into the asset class in the week though July 23, according to EPFR Global data provided by economists at Bank of America Corp. For some, flows of such a magnitude signal that EM debt is already predicting the best-case scenario. 'The market is now priced for a Goldilocks scenario with the risk of a severe recession receding significantly and expectations' of one or more rate cuts by the Federal Reserve, the $847 million Enko Africa Debt Fund said in a letter to clients. Managed by Alain Nkontchou, the Africa-specific hedge fund has returned 24% over the past year. Nevertheless, the expected volatility means that traditional buy-to-hold trades may not necessarily succeed and that hedge funds will prioritize holding more liquid assets to ensure an easier exit in case sentiment turns, according to ProMeritum Investment Management LLP, a $700-million fund that invests in developing markets outside China. 'Liquidity management will be critical in the second half of the year because of an unpredictable environment and geopolitical risks,' said Evgueni Konovalenko, managing partner and head of strategy at the firm. Such a focus is needed 'to take advantage of both short and long positions with sudden policy changes and a daily barrage of headlines.' --With assistance from Jorgelina do Rosario. More stories like this are available on
