Indian IT firm LTM beats second-quarter revenue view

Oct 16 (Reuters) - Indian IT services firm LTM , formerly known as LTIMindtree, beat second-quarter revenue estimates ​on Friday as its consumer and tech segments performed strongly, ‌but missed profit forecasts.

Consolidated revenue rose 13.6% year-on-year to 118.08 billion rupees ($1.24 billion) in the quarter ended September 30. Data compiled by LSEG showed that analysts, on average, expected ​117.79 billion rupees.

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AI is disrupting India's $315-billion software services sector by undermining ​its billable hour business model, but is also creating new ⁠demand as clients buy services built on the technology. Companies are ramping ​up investments to capture this emerging demand and cushion the hit to ​their core business.

LTM's revenue after stripping out currency fluctuations grew 5.1% in the second quarter. However, revenue from its consumer and tech segments outstripped that, growing 8.6% and 7%, ​respectively, on the same basis.

Revenue from LTM's AI-native business grew 47% year-on-year, ​CEO Venu Lambu said in a statement, though he did not disclose the amount. In ‌July, ⁠when the company first announced the metric, it said it derives $150 million in revenue on a quarterly run-rate basis across three AI-native businesses.

Consolidated profit fell about 0.2% to 13.98 billion rupees ($147.22 million). Analysts had expected profit of ​15.20 billion rupees.

Deal wins ​for the quarter ⁠stood at $1.26 billion, down from $1.68 billion in the preceding quarter and $1.59 billion in the year-ago period.

($1 = 94.9600 Indian rupees)

Updates with share move, deal wins, and details of revenue growth

Reporting by Surbhi ​Misra and Haripriya Suresh in Bengaluru; Editing by Jochelle Mendonca and Sonia Cheema