LTIMindtree Ltd: Driving Global Digital Transformation with AI and Poised for Double-Digit Growth by Q3FY24
LTIMindtree Ltd: Overview
LTIMindtree is a global technology consulting and digital solutions Company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. As a digital transformation partner to 700+ clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world. Powered by 81,000+ talented and entrepreneurial professionals across 38 countries, LTIMindtree a Larsen & Toubro Group Company combines the industry-acclaimed strengths of erstwhile Larsen & Toubro Infotech (LTI) and erstwhile Mindtree in solving the most complex business challenges and delivering transformation at scale. There is expectation of a modest cut in the US interest rate from mid-2024, but the Federal Reserve has indicated that it is expected to remain in the mid-4% level till the end of 2024. Increased government spend and domestic demand is expected to help growth in India and China. For China, housing market corrections and geo-economic risk weigh heavily in the mid-term. Despite the macroeconomic challenges through the year, the technology/IT Services industry stayed resilient as large-scale cost optimization and automation deals helped maintain demand for enterprise software and IT services. In the midst of significant business caution towards investments and delayed decision-making, India’s technology industry revenue (including hardware) is still expected to hit USD 254 Billion (3.8% YoY growth) in FY24, representing an addition of over USD 9 Billion over last year. Exports are poised to touch the USD 200 Billion mark, growing at 3.3% YoY, while the domestic technology sector is expected to cross USD 54 Billion, growing at 5.9% YoY.
Latest Stock News (17 Jan, 2025)
CEO of LTIMindtree, said the company is using artificial intelligence (AI) to improve efficiency and deliver better results for its clients. While the top client currently benefits the most, LTIMindtree aims to extend these productivity gains across its client base, with a broader impact expected in January-March 2025 (Q4FY25. There are quite a few deals that they have won. Last quarter, we announced a $200 million plus deal, and this quarter again; we won a $50 million plus deal. All these deals are vendor consolidations where our AI strategy plays a very big role in terms of the productivity that we can offer to the client over a longer period. The full quarter impact of this will be there in January-March 2025 (Q4FY25) but having said that, it is not a reflection of any softness in business, per se, because it is a reflection of the way we do our business, we expect that as we give the productivity back to the client, they will be also giving us more work based on how we are doing things in other parts of their business. However, they believe LTIMindtree is well-positioned to grow double digits in FY2026 and beyond, with steady market share gains. The brokerage expects a sustained revenue growth momentum in Q4FY25, supported by a ramp-up of recently signed deals, AI project deployments, and a revival of discretionary spending in tech. The deal pipeline remains strong, driven by cost optimisation and vendor consolidation deals, providing medium-term visibility.
Business Segments
- Banking & Financial Services: LTIMindtree enables global and regional banks, card and payments networks, wealth, asset management and other capital markets institutions to accelerate digital transformation and take them to the future, faster. LTIMindtree’s strong domain and technology capabilities, focused sub-industry offerings, and a strong partner ecosystem across banking, financial services as well as enterprise partners, enable true end-to-end transformation, helping BFS clients modernize their core, transform using AI, data and insights, and better engage with their end consumers.
- Insurance: LTIMindtree has been at the forefront of transforming leading P&C insurers, life and annuity insurers, insurance brokers, employee benefits, and reinsurers helping them lower costs, scale operations, personalize products, and thereby shape the future of insurance, faster. The insurance industry is experiencing a wave of technological advancements offering new opportunities for insurers to use our deep expertise with leading edge technologies.
- Hi-Tech & Services: LTIMindtree Hi-Tech & Services industry vertical powers innovation to leading Hi-Tech and Services enterprises across various sub-segments: semiconductors, software and platforms, hardware and OEMs, and professional services. Leveraging our unique expertise from experience to engineering, we deliver differentiated customer experiences while building new-age technology solutions at speed, using Cloud, Data and AI.
- Communications, Media & Entertainment: LTIMindtree works with the world’s leading Broadcasters, Studios, OTT/Streaming, Publishers, Information Services, Education, Music, Gaming, Ad Tech, Telcos, and Multiple-system Operators. The Media & Entertainment industry is trying to monetize their investment on streaming platforms and optimize their cost structures.
- Healthcare: LTIMindtree has delivered transformative consulting services and technology solutions to global healthcare giants across the payer, provider, healthcare product manufacturer, pharmacy, health insurance, and benefits manager landscape. Our key objectives are to reduce the cost of care, improve health outcomes and enhance the patient and clinical experience.
Subsidiary Information
- LTIMindtree GmbH: LTIMindtree GmbH is the German subsidiary of LTIMindtree Ltd., catering to clients in Germany and the broader European market. It specializes in providing IT services, consulting, and digital transformation solutions, particularly for industries such as automotive, manufacturing, and financial services. The subsidiary helps LTIMindtree expand its footprint in the high-potential European market and supports regional clients with localized expertise.
- LTIMindtree LLC: LTIMindtree LLC is the U.S.-based subsidiary of LTIMindtree, focusing on delivering technology solutions to clients across North America. The subsidiary plays a critical role in providing IT consulting, cloud services, digital transformation, and analytics to sectors such as banking, insurance, retail, and healthcare. The U.S. market is a key revenue generator for LTIMindtree, and this subsidiary drives the company’s engagement with Fortune 500 clients.
- LTIMindtree Financial Services Technologies Inc.: This specialized subsidiary caters exclusively to the financial services sector, offering tailored IT solutions for banking, insurance, asset management, and capital markets clients. It focuses on digital transformation, compliance, and operational efficiency in financial services, aligning with the unique needs of this sector.
- LTIMindtree Canada Ltd: LTIMindtree Canada Ltd serves as the company’s hub for operations in the Canadian market. It provides a wide range of IT services, including application development, enterprise solutions, and digital transformation, to industries like financial services, energy, and retail. The subsidiary helps strengthen LTIMindtree’s presence in North America, ensuring proximity to Canadian clients and compliance with local regulations.
Q3 FY25 & Business Highlights
- Revenue of ₹9661 crore in Q3 FY25 up by 7.15% YoY from ₹9017 crore in Q3 FY24.
- EBITDA of ₹1593 crore in this quarter at a margin of 16% compared to 18% in Q3 FY24.
- Profit of ₹1087 crore in this quarter compared to a ₹1169 crore profit in Q3 FY24.
- North America contributed about 74% of the company’s revenue for this Q3 FY25 and 13.8% from Europe and rest is from others. And the highest contributing business segment is BFSI with over 36% share, following Technology, Media & Comm., with 23.7% share in revenue.
- The company has acquired a client with revenue of $50 mn+ in Q3, but has seen more growth in $1 mn+ clients.
- The employee utilization rate has slightly decreased to 85.4% from 87.4%. Employee addition in development team is higher and the sales team has remained stable over many quarters.
- A global manufacturer chose LTIMindtree to manage end to end IT landscape, using LTIMindtree’s AI in Operations platform.
- A leading commercial property and casualty insurance management company selects LTIMindtree to provide end to end services for Duck Creek Suite.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 9017 | 9661 | 33183 | 35517 |
| Expenses | 7432 | 8068 | 27075 | 29130 |
| EBITDA | 1585 | 1593 | 6108 | 6387 |
| OPM | 18% | 16% | 18% | 18% |
| Net Profit | 1169 | 1087 | 4410 | 4585 |
| NPM | 12.9% | 11.3% | 13.3% | 12.9% |
| EPS | 39.5 | 36.6 | 149.1 | 154.7 |