Indian technology services company LTM Limited said artificial intelligence accounted for 13.4% of quarterly revenue, as a move toward shorter AI assignments coincided with a decline in new orders.
LTM reported revenue of ₹118,076 million for the quarter ended Sept. 30, up 13.6% from a year earlier. On an Oct. 16 earnings call, CEO and Managing Director Venu Lambu said AI revenue rose 40% year over year. He described a stronger focus on AI work as clients take on projects that can develop in stages.
LTM separately reported 47% growth in revenue from Enterprise AI and Business AI combined, as detailed in earlier coverage of LTM’s second-quarter results. That combined figure is separate from the 40% AI revenue growth Lambu cited on the call.
Order inflow, a measure of new business booked during the period, came to $1.26 billion. That was down from $1.68 billion in the previous quarter and $1.59 billion a year earlier, LTM’s results showed. Bookings fell even as reported revenue rose.
Lambu said those AI projects can run from six months to one year, depending on the work. An initial assignment in a client’s HR operations could lead to separate projects in supply chain, finance or manufacturing, he said. He also said shorter projects can begin generating revenue sooner for LTM than traditional work.
According to NDTV Profit, Lambu said clients were redirecting existing technology budgets toward AI. He expected efficiency and productivity gains in traditional services to help fund that spending, the outlet reported.
NDTV Profit also reported that Lambu wants another quarter of results before assessing whether the change in deal mix will last.
