Trump announces trade deal with EU following months of negotiations
Introduction & Market Context
LTIMindtree Ltd (NSE:LTIM) presented its Q4 and full-year FY25 results on April 23, 2025, revealing modest revenue growth accompanied by some margin pressure. The IT services company’s stock responded positively to the results, closing up 5.01% at ₹4,536.70, suggesting investors were encouraged by the company’s performance and outlook despite the challenges.
The company, which positions itself as a "Full Stack digital powerhouse," reported serving over 700 global enterprise clients with its workforce of 84,000+ professionals across more than 40 countries on five continents.
Quarterly Performance Highlights
For Q4 FY25, LTIMindtree reported revenue of $1,131.0 million, representing a 5.8% year-over-year increase but a slight 0.7% sequential decline. In Indian rupees, revenue reached ₹97,717 million, up 9.9% year-over-year and 1.1% quarter-over-quarter, highlighting the impact of currency fluctuations on the company’s reported results.
The company’s operating profit (EBIT) for the quarter stood at ₹13,454 million with a margin of 13.8%, showing a 1.2% sequential increase and 2.8% year-over-year growth. Net profit (PAT) reached ₹11,286 million with an 11.5% margin, up 3.9% from the previous quarter and 2.5% from the same period last year.
As shown in the following quarterly financial summary:
Full-Year Financial Analysis
For the full fiscal year 2025, LTIMindtree achieved revenue of $4,492.5 million, representing a 4.8% increase from FY24. In rupee terms, revenue grew 7.0% to ₹380,081 million. However, the company faced margin pressure, with EBIT margin declining to 14.5% from 15.7% in the previous year. Similarly, PAT margin contracted to 12.1% from 12.9% in FY24.
The annual financial performance shows a consistent revenue growth trajectory over the past three years, though at a more moderate pace than in FY23:
Client and Industry Distribution
LTIMindtree maintained a diversified client portfolio across industries, with Banking, Financial Services & Insurance (BFSI) continuing to be its largest segment at 37.1% of revenue in Q4 FY25, up from 35.1% in the same quarter last year. Technology, Media & Communications represented 23.4% of revenue, while Manufacturing & Resources contributed 19.9%. The Consumer Business and Healthcare segments accounted for 14.1% and 5.5%, respectively.
Geographically, North America remained the company’s dominant market, contributing 74.5% of revenue, followed by Europe at 13.6% and Rest of the World at 11.9%.
The following chart illustrates the company’s revenue distribution by industry and geography:
The company also reported steady progress in client metrics, with 14 clients contributing over $1 million in revenue, 40 clients above the $5 million threshold, and 89 clients generating more than $10 million. LTIMindtree’s top 5 clients accounted for 28.3% of total revenue, highlighting the company’s reliance on key accounts while maintaining a diverse client base.
The client composition metrics are detailed in the following chart:
Strategic Initiatives & Future Outlook
LTIMindtree highlighted several key deal wins during the quarter, including contracts with a leading US life insurance company, a global financial institution, a global energy major, a prominent life sciences company in North America, and a leading US materials and construction company. These wins span across the company’s core industry segments and geographic markets.
The following slide details these recent key deal wins:
The company emphasized its robust strategic alliances with major technology partners, including Adobe (NASDAQ:ADBE), AWS, Google (NASDAQ:GOOGL) Cloud, Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), SAP, Salesforce (NYSE:CRM), and ServiceNow (NYSE:NOW), among others. These partnerships are crucial for LTIMindtree’s ability to deliver comprehensive digital transformation solutions to its clients.
Looking ahead, LTIMindtree outlined ambitious ESG (Environmental, Social, and Governance) goals, including achieving net zero emissions by 2040, using 85%+ renewable energy by 2030, and increasing women in its workforce to 40% by 2030. The company also aims to impact over 4 million lives positively in communities by 2030.
The company’s comprehensive ESG roadmap is illustrated below:
Operational Metrics
On the operational front, LTIMindtree reported an employee utilization rate (excluding trainees) of 85.8% in Q4 FY25, a slight improvement from 85.4% in the previous quarter but down from 86.9% in Q4 FY24. The company maintained an offshore-onsite effort mix of 84.9% to 15.1%, consistent with the previous year.
Total (EPA:TTEF) headcount stood at 84,307 employees at the end of FY25, with women comprising 30.4% of the workforce. The company has set a goal to increase female representation to 40% by 2030 as part of its ESG initiatives.
Overall, LTIMindtree’s Q4 and FY25 results reflect a company navigating a challenging IT services landscape with modest growth while positioning itself for future opportunities through strategic partnerships, client diversification, and a strong focus on sustainability and inclusion.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.