Most clients of LTIMindtree are making foundational investments in artificial intelligence (AI) and data infrastructure, reflecting a deep commitment to technological advancements that could reshape their operations, Sudhir Chaturvedi, Whole-Time Director & President of LTIMindtree told FE.
“Clients are making foundational investments in AI, creating their own GPU infrastructure to run small language models and ensuring robust data lineage and security,” he said. These steps are pivotal as they enable the enterprise-wide adoption of AI, which is necessary for leveraging vast amounts of both structured and unstructured data.
The IT company is currently engaged in around 150 AI and GenAI projects. A notable example includes a collaboration with Nvidia, aimed at integrating software directly into factory GPUs to enhance operational efficiency. “This is not just about automation but enhancing the experience and productivity through hyper-personalisation, significantly impacting marketing and customer interaction strategies,” Chaturvedi said.
However, the integration of AI also poses challenges, such as potential revenue cannibalization. “While embedding AI across our operations might cannibalize some of our existing revenue streams, it positions us ahead as a proactive, AI-first company,” he said.
The company’s consolidated revenue rose nearly 3% quarter-on-quarter to`9,142.6 crore in April-June, while the bottom line rose to `1,133.8 crore in the June quarter, up from `1,099.9 crore in the previous quarter.
LTIMindtree, however, witnessed a year-over-year dip in net profit, attributed mainly to heightened visa costs and increased travel associated with new project wins. “These costs are indeed growth indicators, reflecting our expanding onsite engagements,” Chaturvedi said.
North America remains a strong revenue driver for the company, accounting for over 75% of the total revenue, with a 4.4% sequential increase. “Our strength in North America continues to grow, supported by substantial client engagements in sectors like BFSI, technology, and manufacturing,” Chaturvedi said.
In contrast, revenue from other regions, particularly India, saw declines due to the cyclical nature of projects, he added. The revenue from Europe rose 1%, while sales from the rest of the world saw a decline of 7.4%.
The company’s management also said that they expect to see this positive momentum in the second quarter of FY25. “We are seeing promising, though early, signs of recovery in demand. We expect the momentum to continue in Q2,” they said in the post-earnings press conference.
“While the environment remains unchanged, fiscal 2025 started on a positive note for us… This is attributed to a measured uptick in IT spending for critical initiatives with clients balancing innovation and fiscal prudence.” Debashis Chatterjee, chief executive officer and managing director of the company said.
