LTIMindtree Q3FY25 net profit drops 9.4% to ₹1,086 crore; EBITDA margin contracts to 16.5%

LTIMindtree posted single-digit growth at 7.1% YoY in the revenue for the quarter at ₹96,60.9 crore as compared to ₹90,16.6 crore in Q3FY24 and a marginal 2.4% QoQ jump from ₹94,32.9 crore. The revenue in constant currency terms grew by 5.6% YoY to $1,138 million as compared to $1,083 million in previous year similar quarter

This was largely due to a 10.1% YoY jump in the banking and financial services vertical at ₹35,308 crore and similar growth in the Telecommunications segment at ₹22,808 crore.

On the operational front, the earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at ₹18,66.1 crore, 2.2% higher than the previous year’s similar quarter at ₹18,62.9 and 4% sequentially drop from ₹19,487 crore.

The EBITDA margins for the quarter ended December 2024 dropped by 110 bps to 16.5% from 17.6% in Q3FY24 and 150 bps from 18% in the previous quarter. This was largely due to an 11% YoY jump in the employee benefit expense at ₹6,254.9 crore, which contributed more than 80% of the total expenses for the quarter.

Management commentory

Debashis Chatterjee, Chief Executive Officer and Managing Director, said,"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 $ terms. Our differentiated AI strategy has helped us record our highest-ever order inflow of $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.

Lastly, the quarter's net profit dropped by 9.45% to ₹1,084 crore, compared to ₹1168 crore in Q3FY24. In addition, the company also achieved record order inflow of $1.68 billion in Q3FY25 which is 29% higher than the previous quarter. The total employee strength for the quarter stood at 86,800 professionals, in which the company added 2,362 proffesionals during the quarter.

Shares of LTIMindtree closed 2.57% higher on Thursday ahead of its Q3FY25 results, which were announced after market hours and suggest subdued profit growth for the quarter.