LTIMindtree Shares Fell ~2% After Release of Q3FY25 Earnings

LTIMindtree Ltd reported its financial results for the quarter ended December 31, 2024, showcasing moderate growth in revenue, while profitability experienced some pressure. The company reported revenue amounting to ₹96,609 million, up by 2.4% QoQ and 7.1% YoY. Net profit stood at ₹10,867 million, showing a decrease of 13.2% QoQ and 7.1% YoY.

In USD terms, the company recorded a revenue of $1,138.7 million, marking a 1.1% increase quarter-over-quarter (Q-o-Q) and a 5.1% rise year-over-year (Y-o-Y). Operating margin (EBIT) stood at 13.8%, reflecting a stable performance. However, net profit in USD declined by 14.3% Q-o-Q and 8.8% Y-o-Y, amounting to $128.1 million.

Client Growth and Workforce Expansion

As of December 31, 2024, LTIMindtree reported having 742 active clients, indicating a steady demand for its services. The company continues to see significant growth in its high-value client base, with the number of clients generating over $5 million in annual revenue increasing by 3 to a total of 152. Additionally, the number of clients contributing over $10 million and $50 million in annual revenue also grew, reaching 90 and 13, respectively.

On the workforce front, the company added 2,362 professionals in Q3 FY25, bringing the total headcount to 86,800. However, the trailing 12-month attrition rate stood at 14.3%, indicating a need for further efforts in talent retention.

Key Deal Wins Focused on AI and Digital Transformation

LTIMindtree secured several significant deals during the quarter, with a particular focus on AI-driven solutions across multiple industries. Some of the notable wins include:

• A global manufacturing company selected LTIMindtree to manage its IT landscape using the company’s AI in Operations platform.
• A leading global investment firm chose LTIMindtree’s proprietary AI in Infrastructure platform to handle its infrastructure services.
• LTIMindtree was also chosen by a prominent Middle Eastern nuclear energy company for end-to-end IT services using the AI in Operations platform, and by a major oil and gas company in the region to implement AI in cloud operations.

Additionally, LTIMindtree secured deals with clients across sectors like insurance, commercial property, and credit ratings, where it will deploy its AI and data management platforms.

Strategic Partnerships to Drive Innovation

LTIMindtree strengthened its position in the AI and cloud domains through several strategic partnerships. The company attained AWS GenAI competency, further solidifying its AI expertise on AWS platforms like Amazon Bedrock and Quicksight. This achievement marks LTIMindtree’s 11th AWS specialization and enhances its credibility in the AI innovation space.

Moreover, LTIMindtree and Microsoft have teamed up to drive AI innovation and digital transformation for global enterprises. The partnership will leverage Microsoft technologies like 365 Copilot and Canvas Sunshine.

LTIMindtree also launched a comprehensive solution for Oracle Database Migration to Azure Cloud, enabling smoother transitions and optimized performance for clients. In recognition of its prowess, LTIMindtree received several accolades, including ServiceNow’s ITOM visibility achievement and Boomi’s Asia Partner of the Year Award.

LTIMindtree shares opened at ₹5,780.30 and touched the day low of ₹5,780.30 at 09:20 AM, reflecting a fall of ~2% against the previous day close.

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