LTIMindtree is optimistic about maintaining its strong growth trajectory in Q4 of FY25 and is confident that FY26 will surpass FY25 in performance, according to Debashis Chatterjee, the company’s CEO and managing director.
“We achieved sequential revenue growth in Q1 and Q2, and this momentum continued in Q3. We are confident it will carry through Q4 as well,” Chatterjee told FE.
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He highlighted early signs of a revival in discretionary spending, particularly within the banking, financial services, and insurance (BFSI) sector. “We are beginning to see some discretionary spending in BFSI. While it is not yet broad-based, we anticipate a stronger resurgence in the next fiscal,” he noted.
The company has also observed accelerated decision-making in deal closures, especially for large, multi-year cost-saving and consolidation contracts. “We secured a $200 million-plus deal last quarter and a $50 million-plus deal this quarter. These closures happened significantly faster than last year,” Chatterjee said.
In Q3 FY25, LTIMindtree reported its highest-ever order intake of $1.68 billion, marking a 29% quarter-on-quarter and 12% year-on-year increase. “Our strong pipeline and robust deal flow reinforce our confidence that FY26 will outperform FY25,” he added.
Chatterjee, however, acknowledged certain challenges in Q3, including fewer working days, client furloughs, and significant forex impacts. “Fewer working days and client furloughs affected operations. Additionally, we faced a $7 billion forex swing, which reduced our overall growth by 70 basis points,” he explained.
The company reported a 13.2% decline in consolidated net profit to Rs 1,086 crore for the December quarter, while revenue from operations grew 2.4% to Rs 9,660 crore. Ebit margins dropped sequentially from 15.5% to 13.8%. “Some of the productivity gains achieved through AI are shared with our top client, impacting short-term margins. However, we expect growth from this client to resume over time,” Chatterjee remarked.
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LTIMindtree’s positive net headcount addition continued for the third consecutive quarter, with 2,362 employees joining in Q3, bringing the total headcount to 86,800. The trailing 12-month attrition rate improved to 14.3%.
“We are focused on workforce expansion while integrating AI into our service offerings. AI is central to our strategy and essential for closing large deals,” Chatterjee stated.
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