LTIMindtree’s net profit remained nearly flat at Rs 1,398 crore in the September quarter, even as revenue climbed 13.6% to Rs 11,807.6 crore. While the AI segment grew by 47%, a decline in new deal bookings to $1.26 billion has drawn investor attention. The company also announced a Rs 25 per share interim dividend with a record date of October 23.
LTIMindtree reported a complex second quarter for the current fiscal year, with revenue growth failing to translate into higher profits. While the company's revenue increased by 13.6% year-on-year to Rs 11,807.6 crore, its net profit saw a marginal decline of 0.1% to Rs 1,398 crore. This gap highlights the operational cost pressures that the IT services provider faced during the period.
Business Drivers and Order Book Trends
The company is betting heavily on artificial intelligence to drive future growth. Revenue from its enterprise and business AI segments saw a strong 47% increase compared to the previous year. This growth helped the company add a new client to its high-value category, which consists of customers contributing more than $100 million in revenue. Despite this, there is a clear cooling in new business intake. Total order bookings for the quarter fell to $1.26 billion, down from $1.59 billion in the same quarter last year. A drop in order bookings can sometimes signal a slowdown in client spending or a more cautious environment in the IT sector.
Operational Margins and Performance
Profitability faced pressure from higher operating costs. The company’s operating margin improved slightly to 15.6% from 15.5% in the previous quarter, but it remains lower than the 15.9% reported in the same period last year. Investors often monitor these margins closely, as they reflect how effectively the company can convert its revenue into profit amidst wage inflation and operational challenges. The company reported its total headcount at 88,835, with a net addition of 949 employees during the quarter. Attrition remained stable at 13.3%, which is a positive indicator for talent retention stability.
Shareholder Returns
The company board has declared an interim dividend of Rs 25 per equity share. To be eligible for this payout, shareholders must ensure their names are on the company’s register by the record date of October 23. Payments are expected to be processed within 30 days of the record date. Shares of LTIMindtree closed at Rs 4,385 on the BSE prior to the results, reflecting a 3.18% gain for the session.
Moving forward, investors may track whether the company can stabilize its order bookings and whether the momentum in its AI-driven business can effectively offset cost pressures to improve margins in the coming quarters.