LTIMindtree (LTIM) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached $1.14 billion (₹96,609 million), up 5.6% year-over-year in constant currency, with growth across all verticals, especially BFSI.

• Record total contract value (TCV) of $1.68 billion, up 29% quarter-over-quarter, with significant new wins in manufacturing and BFSI.

• EBIT for Q3 FY25 was INR 14,582M, up 8.9% quarter-over-quarter and 4.1% year-over-year.

• Net profit after tax for the quarter was ₹10,867 million, compared to ₹11,693 million in the same quarter last year and ₹12,516 million in the previous quarter.

• AI strategy is central, with broad client engagement and major deal wins leveraging proprietary AI platforms.

Financial highlights

• EBIT margin declined to 13.8% from 15.5% in Q2, mainly due to wage hikes, but improved to 15.1% year-over-year.

• PAT margin was 11.2%, down from 13.3% in Q2; basic EPS at INR 36.7 versus INR 42.3 in Q2.

• Operating cash flow to PAT improved to 126.3% (from 74.2% in Q2); free cash flow to PAT at 106.8%.

• Cash and investment balances rose by nearly 500 crores QoQ to 12,488 crores ($1.4 billion).

• Return on equity for the quarter was 23.7%.

Outlook and guidance

• Strong deal pipeline and order inflow support optimism for Q4 growth, with reversal of most furloughs and continued BFSI strength.

• Margin improvement expected in Q4, but full absorption of wage hike impact may take longer.

• Persistent political and economic uncertainties, especially with potential U.S. policy changes, may affect client spending.

• Results are in compliance with Indian Accounting Standards and have been reviewed by the Audit Committee and Board.