LTIMindtree shares dip 3% as Q3 PAT declines 7% YoY to Rs 1,085 crore

LTIMindtree shares slid 3.3% in early trade to their day’s low of Rs 5,780.30 on the BSE on Friday, January 17, after the company reported a 7.1% decline in its consolidated net profit for the quarter ended December 31, 2024, to Rs 1,085 crore, compared to Rs 1,169 crore posted in the year-ago period.

Revenue from operations in Q3FY25 stood at Rs 9,661 crore, marking a 7.1% increase from Rs 9,017 crore in Q3FY24. However, on a sequential basis, profit after tax (PAT) dropped by 13.2%, compared to Rs 1,251 crore reported in Q2FY25.

Dollar revenue for LTIMindtree was reported at $1,138.7 million, reflecting a 1.1% QoQ growth and a 5.1% YoY increase. The operating margin, expressed as earnings before interest and taxes (EBIT), stood at 13.8% for the quarter.


Global brokerage Macquarie maintained an 'Outperform' rating on LTIMindtree, with a target price of Rs 7,100. The firm highlighted the company's record deals and broad-based client growth, although productivity gains were affected by challenges with its top Hi-Tech customer. The EBIT margin declined by 170 bps QoQ due to wage hikes. Despite this, Macquarie remains optimistic about CY25, anticipating an improvement in demand.

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LTIM Management Talk

“We closed Q3FY25 with a revenue of USD 1.14 billion, registering a sequential growth of 1.8% in constant currency and 1.1% in USD terms. Our differentiated AI strategy has helped us record our highest-ever order inflow of USD 1.68 billion, laying the foundation for future growth. Our ongoing investments in AI, including new partnerships and specializations, and accolades, support our efforts to continue growing as we enter CY25,” said Debashis Chatterjee, Chief Executive Officer and Managing Director.

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Segment Revenue

-The banking, financial services, and insurance vertical contributed 36.4%, up from 35.6% in Q3FY24 and 35.6% in Q2FY25.
-The technology, media, and communications vertical contributed 23.7%, up from 22.9% in Q3FY24 and 25.4% in Q2FY25.
-The manufacturing & resources vertical contributed 19.3%, down from 20.3% in Q3FY24 and up from 18.1% in Q2FY25.
-The consumer business vertical contributed 14.3%, down from 14.7% in Q3FY24 and 14.5% in Q2FY25.
-The manufacturing & resources vertical contributed 6.3%, down from 6.5% in Q3FY24 and 6.4% in Q2FY25.

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