LTIMindtree Implements AI Solutions Across Top Clients, Boosts Profit and Revenue

 

LTIMindtree, a leading IT services company, has achieved remarkable growth by integrating Artificial Intelligence (AI) into its operations. In the quarter ending September, the company saw a 3.2% sequential revenue increase and a notable 10.3% rise in net profit, reaching ₹1,251.6 crore. This growth is largely attributed to significant AI deployments across its top 100 clients, with around 40 of them already implementing AI or Generative AI (GenAI) in their processes.

CEO Debashis Chatterjee emphasized that these AI solutions are primarily focused on enhancing operational efficiency and accuracy, leading to cost savings for clients, rather than directly driving revenue. "Most AI use cases we've implemented target productivity by improving efficiency and accuracy, especially in sectors like banking, financial services, and insurance (BFSI)," said Chatterjee. LTIMindtree recently secured a sizable deal in the BFSI space, valued as a significant win even though it has a short-term execution timeline of one year.

Chatterjee also mentioned that LTIMindtree is committed to making AI accessible to all its employees, with 63% of the workforce currently undergoing AI training. This aligns with the company’s "AI for everyone" initiative.

In terms of large deals, the company’s pipeline remains robust. LTIMindtree recently consolidated its presence in key accounts, securing a total contract value (TCV) exceeding $200 million over five years. Chatterjee expressed cautious optimism for the remainder of the fiscal year, acknowledging potential challenges like seasonal headwinds and global economic uncertainties.

Regarding future business, client budget cycles are expected to pick up after the US elections, with many clients currently holding off on finalizing their plans. The company also intends to increase its workforce, particularly in AI and data-related roles, while continuing to invest in employee upskilling.

Despite a slight drop in utilization, LTIMindtree expanded its team by over 2,500 employees in the last quarter and aims to lower utilization rates to 85%. Wage hikes in line with market trends are also on the horizon.

As attrition remains stable, the company reports an attrition rate below the 15-16% mark, maintaining a competitive edge in retaining talent.