LTIM REPORTED REVENUE OF US$ 1131 MN, DOWN 0.6% QOQ/ UP 6.3% YOY. SEGMENT WISE ON A QOQ BASIS

News: LTIM reported revenue of US$ 1131 mn, down 0.6% QoQ/ up 6.3% YoY. Segment wise on a QoQ basis, Manufacturing (20% of the mix), BFSI (37.1% of the mix) reported a growth of 2.4%,1.2%. Whereas, Health (5.5% of the mix), Retail (14.1% of the mix) and Hi-Tech (23.4% of the mix) reported a degrowth of 13.3%, 2.1% and 1.9% respectively. Geography wise, on a QoQ basis in US$ terms, RoW (12% of the mix) expanded by 2.8% while Europe (13.6% of the mix) and North America (74.5% of the mix) declined by 2.1% and 0.9% respectively. EBIT margin was flat QoQ at 13.8%. PAT for the quarter stood at ₹1,129 crore, up 4% QoQ. The company during the quarter won a TCV of US$ 1.6 bn, down 5% QoQ/up 14% YoY. For FY25, the revenue stood at US$ 4,492.5 mn, up 5% in CC terms. In rupee terms the revenue stood at ₹38,008 crore, up 7% YoY. EBIT margins for FY25 stood at 14.5%, down 120 bps YoY due to headwinds of 80 bps from project cancellations and 60 bps impact from Higher SG&A and depreciation, offset by 70 bps tailwind from the partial reversal of furloughs, higher working days, and lower pass-through. PAT came at ₹4,602 crore, up 0.4% YoY. Attrition stood at 14.4%, up ~10 bps QoQ and flat YoY.

View: LTI Mindtree’s Q4 revenues were impacted by macro uncertainties, leading to delayed deal ramp up/ closures, though margins remained flat QoQ. The consumer vertical was impacted by client-specific slowdowns in Travel & Hospitality while Health, Life Sciences & Public Services saw a drag largely due to healthcare business. While macro uncertainties may persist in Q1FY26, management is confident of delivering growth, supported by strong bookings, a robust pipeline, and continued client interest in vendor consolidation, cost optimisation, and AI-led digital transformation. For FY26, management is optimistic and focusing on three priorities: sales transformation, multi-service delivery expansion, and enhanced agility and profitability through AI and cost efficiency initiatives. Key monitorable would be company’s ability to recover margins levels as well as deliver on growth ahead

Impact: Neutral