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Informist, Thursday, Jan. 16, 2025

By Steffy Maria Paul

MUMBAI – Information technology services company LTIMindtree Ltd. posted lower-than-expected consolidated net profit for the December quarter. It reported a consolidated net profit of INR 10.85 billion for the quarter, down 13.24% from INR 12.51 billion a quarter ago, and 3% lower than INR 11.18 billion estimated by analysts. The company's net profit for the quarter contracted sequentially after rising for two straight quarters.

The company reported a consolidated revenue of INR 96.61 billion for Oct-Dec, up 2.42% from INR 94.33 billion a quarter ago. The Street had estimated that the company would post a consolidated revenue of INR 96.21 billion for the quarter. On a year-on-year basis, LTIMindtree's consolidated net profit fell 7%, while its consolidated revenue rose 7% on year, the highest in the last five quarters.

For the nine months to December, the company reported a consolidated net profit of INR 34.70 billion, almost flat on year. It reported a consolidated revenue of INR 282.36 billion, up 6% on year. 

For the December quarter, LTIMindtree reported total expenses of INR 84 billion, up 4.4% sequentially. Its employee benefit expenses were INR 62.55 billion, up 4% sequentially. The company's subcontracting expenses rose marginally on quarter to INR 6.90 billion. Its depreciation and amortisation expenses were INR 2.64 billion, up nearly 10% from the previous quarter.

The company reported an earnings before interest and tax margin of 13.8% for the December quarter, lower than the 15.5% reported for the September quarter. Its EBIT for the latest quarter was INR 13.29 billion, down 9% sequentially and 4% on year. The company reported an earnings before interest, taxation, depreciation, and amortisation margin of 16.5% for the latest quarter, down from 18% reported a quarter ago.

The company's consolidated revenue during the latest quarter was up 1.8% sequentially in constant currency terms. The banking, financial services, and insurance segment was the biggest contributor to the revenue for the December quarter with a 36.4% share. This segment reported a revenue of INR 35.31 billion, up 5.2% sequentially. In dollar terms, the segment's revenue rose 3.4% sequentially and 7.5% on year.

The technology, media, and communications segment reported a revenue of INR 22.81 billion for the quarter, up 4.8% sequentially. In dollar terms, the segment's revenue fell 5.8% sequentially but rose 9% on year. The company's revenue from its manufacturing and resources segment rose 9.3% on quarter to INR 18.68 billion. In dollar terms, the segment's revenue rose 8% on quarter and remained flat on year.

Its consumer business reported a revenue of INR 13.73 billion for the December quarter, up marginally on quarter. The revenue from the segment fell slightly on quarter in dollar terms and rose just around 2% on year. The revenue from its health care, lifesciences, and public services business rose only slightly on quarter to INR 6.08 billion. In dollar terms, the revenue from this segment also fell slightly on quarter and rose just around 2% on year.

The company's revenue from North America, which accounts for 75% of total revenue in the reporting quarter, was up only slightly on quarter in dollar terms, but up 8% on year. The company's revenue from Europe for the quarter was down 2.7% on quarter in dollar terms but up slightly on year.

During the December quarter, LTIMindtree reported its highest ever order inflow of $1.68 billion, up 29% on quarter. The company said it had 742 active clients as of Dec. 31, and added 23 new clients during the quarter. LTIMindtree said 152 of these contributed more than $5 million each to revenue. The number of such clients is up by three from a year ago. LTIMindtree also said 90 clients contributed more than $10 million each to the company's revenue during the December quarter while 13 clients contributed more than $50 million each. The revenue contribution from the company's top 5 clients was 27.9%, and 34.5% from the top 10 clients.

The company currently employs 86,800 people, including 2,362 added in the December quarter. Its trailing 12-month attrition rate was 14.3%, down from 14.5% a quarter ago. The company's employee utilisation, excluding trainees, was 85.4% for the reporting quarter, down from 87.7% a quarter ago.

On Thursday, shares of LTIMindtree ended at INR 5,978.80 on the National Stock Exchange, up 2.4%. The company released its December quarter results after market hours.  End

US$1 = INR 86.55

Edited by Tanima Banerjee and Rajeev Pai

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