LTM (LTM) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached $1.14 billion (₹96,609 million), up 5.6% year-over-year and 1.8% sequentially in constant currency, with diversified client base across 40+ countries.

• Record total contract value (TCV) of $1.68 billion, up 29% quarter over quarter, with significant wins in BFSI and manufacturing.

• EBIT for Q3 FY25 was INR 14,582M, up 8.9% quarter-over-quarter and 4.1% year-over-year.

• Employee headcount increased for the third consecutive quarter, with 2,362 new hires in Q3 and attrition stable at 14.3%.

• AI strategy is central, with broad client engagement and multiple AI-driven deal wins across verticals.

Financial highlights

• EBIT margin was 13.8% in Q3, down from 15.5% in Q2, mainly due to wage hikes; PAT margin was 11.2%, down from 13.3% in Q2; basic EPS at INR 36.7.

• Operating cash flow to PAT improved to 126.3%; free cash flow to PAT at 106.8%.

• Cash and investment balances rose by nearly 500 crores QoQ to 12,488 crores ($1.4 billion).

• Return on equity for the quarter was 23.7%.

• Revenue in INR terms was 96,609M for Q3 FY25, up 7.1% year-over-year and 2.4% sequentially.

Outlook and guidance

• Strong deal pipeline and order inflow expected to sustain growth into Q4.

• Margin improvement anticipated in Q4, but full absorption of wage hike impact may take longer.

• AI-driven productivity may create short-term headwinds but is expected to drive long-term growth.

• Results are in compliance with Indian Accounting Standards and have been reviewed by the Audit Committee and Board.