Around 40 LTIMindtree clients of the top 100 have already seen some form of deployment of AI or GenAI proof-of-concept (POC). In several of these cases, the deployment has even progressed into production, CEO Debashis Chatterjee told FE.
LTIMindtree is focusing on “AI for everyone”, which aims to provide AI orientation to all employees. “We maintain our statistics on that matrix. That matrix is at 63% right now,” Chatterjee said.
Further, the company is currently witnessing AI deals that are predominantly focused on the cost side rather than the revenue aspect. “The way AI has been infused in most of the use cases that we see so far is more on the efficiency and accuracy side of productivity. So, it is not really on the revenue side so much, but more on the cost side,” he added.
In the banking financial services and insurance (BFSI) sector, LTIMindtree is seeing higher demand for AI. “In BFSI, we won a fairly decent-sized deal, but it has to be over within one year. This is the space of governance, regulatory and compliance. Now it is not going to be a multi-year deal, but it is still a significant deal,” Chatterjee said.
The IT company reported a 3.2% sequential increase in revenue and 10.3% increase in net profit for the quarter ended September, driven by broad-based growth and large deals. Revenues came in at Rs 9,432.9 crore, while net profit at Rs 1, 251.6 crore.
“We consolidated our standing in an existing account through vendor consolidation and long-term revenue commitment, securing a $200 million+ TCV over a 5-year period. Our large deal pipeline remains robust, with several deals nearing final decisions,” Chatterjee said.
The firm gave a “cautiously optimistic” outlook for the remaining half of the fiscal. “We hope to maintain the momentum of the first half barring the seasonal headwinds in Q3 and (prevalent) uncertainties (in the business environment),” the company management said.
Further, when asked about the impact of the US Federal Reserve and European Central Bank rate cuts on client budgets, Chatterjee said clients are currently awaiting the results of the US elections before finalising their budget cycles. “Everybody is waiting for the US election to get over. And probably the budget cycles also will start after that,” he said.
Regarding hiring, LTIMindtree plans to increase its headcount based on business demand, particularly for AI and data capabilities. “We are very strong in terms of data, infrastructure, cloud, etc. So, our strategy is that we will be hiring as per the business demand and we will be upskilling all our employees in terms of AI capabilities depending on what the individual needs,” Chatterjee said.
He also confirmed that the company added over 2,500 employees this quarter, despite a slight dip in utilisation. This is part of their strategy to bring utilisation down to around 85% in the future.
LTIMindtree has announced that it plans to implement wage hikes aligned with market standards and business needs. In terms of attrition, the company’s rate is currently stable, though it has seen a slight increase. “Around 15-16% attrition we always feel is going to be stable. So, we are lower than that at this point of time,” Chatterjee said.
