Most of LTI Mindtree's clients have made foundational investments in artificial intelligence (AI) and data infrastructure, reflecting a deep commitment to technological advancements that have the potential to transform their operations, Sudhir Chaturvedi, whole-time director and president, LTI Mindtree, told FE.
“Clients are making foundational investments in AI, building their own GPU infrastructure to run small language models, and ensuring robust data lineage and security,” he said. These steps are crucial because they enable the enterprise-wide adoption of AI needed to take advantage of vast amounts of both structured and unstructured data.
The IT company is currently involved in around 150 AI and GenAI projects. One notable example is its collaboration with Nvidia, which aims to integrate software directly into factory GPUs to boost operational efficiency. “This is not just about automation, it's about improving experience and productivity through hyper-personalization, which will have a huge impact on marketing.
But integrating AI also comes with challenges, including potential revenue cannibalization. “As we embed AI across our operations, it may cannibalize some of our existing revenue streams, but it puts us ahead as an aggressive AI-first company,” he said.
The company's consolidated revenue rose nearly 3 percent quarter-on-quarter to Rs 9,142.6 crore in the April-June quarter, while its bottom line rose to Rs 1,133.8 crore in the June quarter from Rs 1,099.9 crore in the previous quarter.
However, LTI Mindtree saw its net profit fall year-on-year, mainly due to rising visa costs and increased business travel.
North America continues to be a significant revenue driver for the company, contributing over 75% of total revenue and registering a 4.4% quarter-on-quarter increase. “Our strength in North America continues to grow, supported by large client engagements in sectors such as BFSI, technology and real estate.
In contrast, revenues from other regions, especially India,
The company's management also said that they expect the positive momentum to continue in the second quarter of fiscal 2025. “Signs of demand recovery are still early but encouraging. We expect this momentum to continue in the second quarter,” they said at a press conference after the earnings announcement.
“Despite the unchanged environment, FY25 has started positively for the company, driven by planned increase in IT spending on critical initiatives as clients balance innovation with fiscal prudence,” Debasis Chatterjee, chief executive officer and managing director of the company, said.
