LTM (LTM) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenues reached $1.1 billion, up 3.7% in constant currency and 3.5% in USD year-over-year, with sequential growth of 2.5%.

• EBIT margin improved to 15%, up 30 bps sequentially; net margin was 12.4%.

• Order inflow for the quarter was $1.4 billion, with significant deal wins in BFSI, technology, and manufacturing.

• Clients are shifting savings from cost takeout to high-priority transformation and AI investments.

• Expansion in Saudi Arabia, Calgary, and Shanghai, with a joint venture announced with Aramco.

• Interim standalone and consolidated financial results for the quarter ended June 30, 2024, have been reviewed and approved by the Board and statutory auditors, with no material misstatements identified.

Financial highlights

• EBIT for Q1 was INR 13.7 billion, with an operating margin of 15%, up from 14.7% in Q4 FY24.

• PAT margin remained flat at 12.4%; reported PAT was INR 11.4 billion, up from INR 11 billion in Q4.

• Basic EPS was INR 38.3, compared to 37.2 in Q4 FY24.

• Operating cash flow to PAT was 109.9%, and free cash flow to PAT was 88.6%.

• Cash and investment balances stood at $1.36 billion as of June 30, 2024.

• Consolidated revenue from operations for Q1 FY25 was ₹91,426 million, up from ₹88,929 million in the previous quarter and ₹87,021 million year-over-year.

• Standalone revenue from operations for Q1 FY25 was ₹88,684 million, up from ₹86,039 million in Q4 FY24 and ₹83,788 million in Q1 FY24.

Outlook and guidance

• Positive demand momentum expected to continue into Q2 FY25, especially in BFSI.

• Focus remains on cost takeout and select high-priority transformation projects.

• Wage hikes planned for Q3; margin improvement program ongoing, with gradual increases expected.

• The Board approved a final dividend of ₹45 per equity share for FY24, paid before the end of the quarter.