L&T Infotech Q3 Results: Company posts strong results
Increase in revenue- Larsen and Toubro Infotech (LTI) reported its best quarter till date in terms of revenue. The revenue reported for Q3FY22 was Rs 4,137 crore, a growth of 32.2% YoY and 9.8% QoQ. In constant currency, the revenue increased by 9.2% sequentially. In dollar terms, revenue grew 29.3% YoY.
All the verticals performed well. On a year-on-year basis, BFS grew 38%, Manufacturing grew 30%, Hitech grew 44%, others grew 37%. North America contributed 66% of its total revenue in Q3FY22.
Net Income increase - The net income reported by the company in Q3FY22 was Rs 612 crore, an increase of 18% YoY and 11% sequentially.
Margins decline - The operating profit margins were at 17.9% in Q3FY22 compared to 20.6% in Q3FY21. The reason cited by the company was two rounds of pay hikes to the staff during the year. The Net Income Margins declined to 14.8% compared to 16.5% in Q3FY21.
Attrition and headcount - The attrition rate increased from 19.6% in Q2FY22 to 22.5% in Q3FY22. The company hired over 1200 employees in the Oct-Dec period.
New clients - The company added 27 new clients in the Oct-Dec quarter taking the total active client count to 476. The company now has 8 clients in the $50 million bucket and 1 client with $100 million. The company bagged projects from the largest global veterinary care practices and chain of North American pet clinics, a financial services firm based in North America, and many more.
Larsen and Toubro Infotech Review:
The company has reported excellent numbers both in the topline and bottomline. The challenges in front of the company are decreasing margins and a high attrition rate. The company aspires to keep the net income margin between 14 and 15 percent.
As per management, "Q3 is our best ever quarterly sequential growth since listing. Our ongoing revenue momentum sets us up to deliver our highest year-over-year growth as a publicly listed company. We continue to have incredible conversations with our customers on their digital transformation journeys."
The share price of L&T Infotech closed 1.44% lower on Thursday at Rs 6600 per share.