LTIMindtree Reports Muted Earnings For March Quarter, Misses Expectations

LTIMindtree Ltd. reported muted earnings for the March quarter, with both revenue and net profit falling short of analysts’ expectations. The company’s consolidated revenue for the quarter rose by 1.2% sequentially to ₹97.72 billion, the lowest growth in the last seven quarters, and below the anticipated ₹98.49 billion. 

The consolidated net profit for the quarter rose nearly 4% sequentially to ₹11.29 billion, but still missed analysts’ expectations of ₹11.55 billion. The company’s net profit on year grew by 2.6%, while its revenue rose nearly 10.0%, marking the highest growth in the past seven quarters.

For the financial year ending March 31, the company posted a net profit of ₹45.99 billion, up 0.4% on year. Its consolidated revenue for the year was ₹380.08 billion, up 7% on the previous year.

Total expenses for the quarter were ₹84.94 billion, up 1.1% sequentially. Employee benefit expenses, which accounted for more than 76% of the total expenses, increased by 3.4% to ₹64.67 billion. Subcontracting expenses fell 12% to ₹6.08 billion, while depreciation and amortisation expenses declined 5% to ₹2.51 billion.

In dollar terms, revenue fell by 0.7% sequentially to $1.13 billion, slightly missing expectations of $1.14 billion. However, in constant currency terms, revenue fell 0.6% sequentially but rose 6.3% on year. For 2024-25, the company reported a 4.8% rise in revenue to $4.49 billion, with a 5% increase in constant currency terms.

Operating margin for the March quarter remained unchanged at 13.8%. For 2024-25, EBIT margin was 14.5%, down from 15.7% in 2023-24.