LTIMindtree's Q3 results: Net profit declines 12% YoY to ₹960cr
What's the story
Leading IT services provider, LTIMindtree, has reported an 12% year-on-year decline in its net profit for the third quarter ending December 31. The company's net profit stood at ₹960 crore during the period. The decline is largely attributed to a one-time charge of ₹590.3 crore incurred while implementing new labor codes. Sequentially, the net profit also fell by 30.5%.
Financial performance
Revenue and operating margins show resilience
Despite the one-time charge, LTIMindtree's revenue for the quarter rose 11% YoY to ₹10,781 crore. Sequentially, it also grew by 3.7%. The company's operating margins improved by 20 basis points sequentially to 16.1% in Q3. Excluding the impact of labor codes, LTIMindtree's net profit would have risen by a robust 29% YoY to ₹1,401 crore.
Leadership remarks
LTIMindtree's CEO comments on performance
Venu Lambu, the CEO and MD of LTIMindtree, commented on the company's strong Q3 performance. He attributed it to their strategic AI pivot, success in large deals, and operational excellence. "This marks our third consecutive quarter of 2%+ growth, highlighting our disciplined execution," said Lambu. He further emphasized their focus on driving profitable growth and delivering tangible outcomes for clients in the future.
Workforce details
Workforce and client base
As of December 31, LTIMindtree had a total headcount of around 87,958 professionals. The company added 1,511 employees in Q3. The company's active client count stood at 746 during the period under review.