LTIMindtree reported a 4.7% year-on-year revenue rise to $1.2 billion for the September quarter, fueled by a 47% increase in its AI segment. The company declared an interim dividend of Rs 25 per share. However, investors may monitor the moderation in new order inflows, which fell to $1.2 billion compared to the previous quarter.
LTIMindtree posted a steady performance in the September quarter, with revenue reaching $1.2 billion, marking a 4.7% increase compared to the same period last year. On a quarterly basis, revenue grew by 1%. A key highlight of the results was the rapid adoption of the company's AI services, with combined revenue from Enterprise AI and Business AI segments climbing 47% year-on-year. This focus on artificial intelligence has helped the company secure a new contract in the financial services sector, which remains a core area for the firm.
While the company showed growth in key technology areas, operational metrics present a mixed picture for investors. The EBIT margin stood at 15.6%, a marginal improvement from the previous quarter but still trailing the 16.1% level seen in December. Margin levels are a critical monitorable for the IT services sector, as companies balance employee costs with competitive pricing.
Another important factor to track is the order book trend. The company reported order inflows of $1.2 billion, a decrease from the $1.6 billion recorded in the previous quarter. In the IT services industry, order inflows serve as a leading indicator of future revenue; a moderation here can signal cautious spending by clients in the current global economic environment. Additionally, while the workforce grew to 88,835 employees and attrition rates improved to 13.3%, utilization rates—which measure how much of the staff is billable to clients—dipped to 86.4%.
Despite the decline in the total number of active clients from 740 to 729, the firm has been successful in deepening relationships with existing large customers. The company added one new client to its $100 million-plus revenue category, bringing the total in this high-value bracket to three. This shift toward higher-value customers is often a strategic priority to stabilize revenue streams.
As part of its capital allocation, the board has declared an interim dividend of Rs 25 per equity share. Going forward, investors may want to watch for updates on deal pipeline conversion, the ability to improve margins back toward previous peaks, and whether the company can stabilize its order inflow against the backdrop of broader industry demand trends.