LTIMindtree Reports 7.1% Q3 Revenue Growth but Profit Declines Due to Rising Costs
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Synopsis
On January 16, LTIMindtree announced a 7.1% increase in revenue to Rs 9,661 crore for Q3, but net profit fell by 7.1% due to rising costs. The firm continues to invest in AI, securing significant contracts and expanding its client base.
Key Takeaways
- Revenue increased by 7.1% to Rs 9,661 crore.
- Net profit decreased by 7.1% year-on-year.
- 742 active clients reported as of December 31, 2024.
- AI platforms have driven significant business growth.
- Company aims for continued growth through strategic investments.
Mumbai, Jan 16 (NationPress) LTIMindtree recorded a 7.1 percent year-over-year increase in revenue reaching Rs 9,661 crore. However, the company's net profit decreased during the October-December quarter of the current financial year due to escalating expenses.
The IT giant reported a net profit of Rs 1,087 crore, reflecting a 7.1 percent drop compared to the same quarter in the previous year. This also marked a 13.2 percent decline from the profit reported in the preceding quarter.
As of December 31, 2024, LTIMindtree stated it has 742 active clients and has added 5 major clients in the $5 million to $50 million category year-over-year.
The company now employs 86,800 professionals as of December 31, 2024, with 2,362 new hires in Q3 (October-December). The attrition rate over the trailing 12 months stands at 14.3 percent.
LTIMindtree's banking and financial services sector witnessed a growth of 7.5 percent year-on-year, bolstered by new client contracts.
The firm also announced significant deals for its AI platform, including a global manufacturer that opted for the company's 'AI in Operations' platform for managing its complete IT landscape. Additionally, a prominent global investment firm has selected LTIMindtree's proprietary 'AI in Infrastructure' platform for its comprehensive infrastructure services.
Moreover, the company secured two major contracts in the Middle East with an oil and gas leader and a nuclear energy corporation. A New York-based top credit ratings provider has also engaged LTIMindtree to implement AI in Application Managed Services.
"Our unique AI strategy has enabled us to achieve our highest-ever order inflow of $1.68 billion, setting the stage for future expansion. Our continuous investments in AI, alongside new collaborations and specializations, facilitate our growth as we approach calendar year 25," stated Debashis Chatterjee, CEO and Managing Director of LTIMindtree.
