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Informist, Wednesday, Apr. 23, 2025

 

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--LTIMindtree Jan-Mar consol PAT INR 11.29 bln vs INR 10.85 bln qtr ago 
--Analysts saw LTIMindtree Jan-Mar consol net profit INR 11.55 bln 
--LTIMindtree Jan-Mar consol revenue INR 97.72 bln vs INR 96.61 bln qtr ago 
--LTIMindtree to pay INR 45 per share final dividend 
--LTIMindtree FY25 consol PAT INR 45.99 bln vs INR 45.82 bln year ago 
--LTIMindtree FY25 consol revenue INR 380.08 bln vs INR 355.17 bln year ago 
--LTIMindtree Jan-Mar consol revenue down 0.6% on qtr in constant currency 
--LTIMindtree Jan-Mar consol revenue up 6.3% on year in constant currency 
--LTIMindtree Jan-Mar order inflow $1.60 bln vs $1.68 bln qtr ago 
--LTIMindtree total headcount 84,307 as on Mar 31 vs 86,800 qtr ago 
--LTIMindtree Jan-Mar consol EBIT margin 13.8%, unch on qtr 
--LTIMindtree FY25 consol revenue up 5% on year in constant currency 
--LTIMindtree Jan-Mar utilisation 85.8% vs 85.4% qtr ago 
--LTIMindtree trailing 12-month attrition 14.4% vs 14.3% qtr ago 
--LTIMindtree active clients 741 as on Dec 31 vs 742 qtr ago 
--LTIMindtree Jan-Mar BFSI sales up 1.2% QoQ in dollar terms, up 12% YoY 
--LTIMindtree Jan-Mar tech, media, comm sales down 1.5% QoQ in dollar terms 
--LTIMindtree Jan-Mar tech, media, comm sales up 2.1% YoY in dollar terms 
--LTIMindtree Jan-Mar mfg, resources sales up 2.3% QoQ in dollar terms 
--LTIMindtree Jan-Mar mfg, resources sales up 13.3% YoY in dollar terms 
--LTIMindtree Jan-Mar N America sales dn 1% QoQ in dollar terms, up 6.8% YoY 
--LTIMindtree Jan-Mar Europe sales dn 2% QoQ in dollar terms, dn 1.5% YoY
 

 

By Arya S. Biju

 

MUMBAI – Technology services and consulting company LTIMindtree Ltd. reported muted earnings for the March quarter, with both the top line and bottom line falling short of the Street's expectations. The company's consolidated revenue for the quarter rose 1.2% on quarter to INR 97.72 billion, marking the lowest sequential growth in the top line in the last seven quarters. This was also below the INR 98.49 billion revenue expected by analysts. Analysts had expected slow client spends, deal ramp-downs, and pass-back of productivity gains from artificial intelligence efficiencies to a large hi-tech client to impact the company's top line for the quarter.   

 

Its consolidated net profit for the quarter rose nearly 4% sequentially to INR 11.29 billion, failing to meet analysts' expectations of INR 11.55 billion. On a year-on-year basis, LTIMindtree's consolidated net profit grew 2.6?ter reporting a fall in the previous quarter, while its consolidated revenue rose close to 10.0%, the highest in the last seven quarters.  

 

For the financial year ended Mar. 31, the company reported a consolidated net profit of INR 45.99 billion, up 0.4% on year. Its consolidated revenue for the full year was INR 380.08 billion, up over 7% on year. "Our key verticals and a major geography drove our yearly growth despite an ongoing challenging macro environment," Debashis Chatterjee, chief executive officer and managing director of the company, said in a press release.

 

The company's total expenses for the quarter were INR 84.94 billion, up 1.1% on quarter. Its employee benefit expenses, which accounted for more than 76% of the total expenses, rose 3.4% sequentially to INR 64.67 billion. The company's subcontracting expenses fell nearly 12% on quarter to INR 6.08 billion. The depreciation and amortisation expenses for the quarter fell over 5% sequentially to INR 2.51 billion, while other expenses fell nearly 2% on quarter to INR 11.01 billion.

 

In dollar terms, the company's revenue fell 0.7% on quarter to $1.13 billion, slightly missing analysts' expectation of $1.14 billion. In constant currency terms, revenue fell 0.6% on quarter but rose 6.3% on year. For the financial year 2024-25 (Apr-Mar), the company reported a 4.8% on-year rise in revenue to $4.49 billion. In constant currency terms, revenue for the same period was up 5% on-year. 

 

The company's operating margin, calculated as earnings before interest and tax margin, for the March quarter remained unchanged at 13.8% from the previous quarter. For FY25, the company reported an EBIT margin of 14.5%, lower than the 15.7% reported in FY24.

 

SEGMENTS, GEOGRAPHIES

The company's consolidated revenue from its biggest vertical--banking, financial services, and insurance--rose 2.6% on quarter to INR 36.24 billion. In dollar terms, the segment's revenue rose 1.2% sequentially and 12.0% on year. Revenue from the manufacturing and resources segment rose 4.3% on quarter to INR 19.49 billion. In dollar terms, it was up 2.3% on quarter and 13.3% on year.

 

The technology, media, and communications segment reported a consolidated revenue of INR 22.95 billion for the March quarter, up marginally from INR 22.81 billion reported in the previous quarter. In dollar terms, the segment's revenue saw a 1.5?cline on quarter, but it was up 2.1% on year. Its consumer business revenue for the quarter was INR 13.71 billion, down marginally from INR 13.73 billion reported in the previous quarter. In dollar terms, the segment's revenue fell 2.4% on quarter and 1.9% on year. Revenue from the health care, life sciences, and public services vertical saw a sequential drop of 12.3% to INR 5.33 billion. In dollar terms, the segment's revenue declined 14.0% sequentially and 16.2% on year.

 

The company's revenue from North America, which accounted for nearly 75% of total revenue in the reporting quarter, fell 1.0% sequentially in dollar terms, but was up 6.8% on year. Revenue from Europe in dollar terms was down 2.0% on quarter and 1.5% on year.

 

The company's order inflow for the quarter was $1.60 billion, down from $1.68 billion in the December quarter. For FY25, the order inflow was $5.99 billion, up from $5.64 billion in FY24. The company lost one active client in the quarter, taking the total number of active clients to 741. LTIMindtree added 26 new clients in the reporting quarter. The revenue contribution from the company's top five clients for the quarter fell to 27.7% from 27.9% in the December quarter. Its top 10 clients contributed 34.3% of the company's revenue, down from 34.5% in Oct-Dec.

 

The company currently has 84,307 employees, down from 86,800 employed a quarter ago. Its trailing 12-month attrition rate remained unchanged on year at 14.4%, but was slightly higher than 14.3% in the previous quarter. The employee utilisation rate, excluding trainees, for the quarter improved by 40 basis points from Oct-Dec to 85.8%.

 

On Wednesday, shares of LTIMindtree ended 5% higher at INR 4,536.70 on the National Stock Exchange. The company released its results after market hours.  End

 

US$1 = INR 85.42

 

Edited by Saji George Titus and Rajeev Pai

 

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