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Friday, 16 October
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EconomyIT

LTM's profit stays flat at ₹1,398 crore as AI work grows 40%

The IT company formerly called LTIMindtree grew rupee revenue 13.6%, helped by the weak rupee, but its dollar revenue rose just 1.1% from the previous quarter.

From the editorial desk · MumbaiPublished
Larsen & Toubro office (file photo)
Larsen & Toubro office (file photo)Photo: Batmaniacs / Wikimedia Commons, CC BY-SA 4.0

Key points

  1. LTM's net profit slipped about 0.2% to ₹1,398 crore in the September quarter.
  2. Dollar revenue was $1,235.2 million, up 5.1% from a year earlier in constant currency.
  3. AI services now make up 13.4% of sales and grew 40% over the year.

LTM, the IT services company formerly known as LTIMindtree, reported a nearly unchanged quarterly profit on Friday, as faster growth in rupee terms masked a slow quarter in dollars.

Consolidated net profit for the three months to September was ₹1,398 crore, down about 0.2% from ₹1,401 crore a year earlier. Revenue from operations rose 13.6% to ₹11,808 crore, flattered by the rupee’s fall against the dollar over the past year.

In dollars, the currency most of its clients pay in, revenue was $1,235.2 million. That was 5.1% higher than a year ago in constant currency, but only 1.1% more than in the June quarter.

AI and margins

The company has been pitching itself as a builder of AI systems for large companies, which it calls “the agentic enterprise era”. AI work made up 13.4% of revenue in the quarter and grew 40% over the year.

Its operating margin, measured as earnings before interest and tax, improved by 10 basis points from the previous quarter to 15.6%. LTM said it won several large deals in banking, insurance, construction and industrial services, and now has three clients each bringing in more than $100 million a year after adding one from financial services.

Headcount rose by 949 during the quarter to 88,835.

LTM’s shares closed 3.66% higher at ₹4,390 on Friday, as IT stocks led the market for a second day. The stock is still down about 28% since the start of the year.

The results follow a mixed set of numbers from larger rivals this week. Tech Mahindra posted a 33% rise in profit, while Wipro gave a cautious forecast for the December quarter.