L&T Infotech sees 28% rise in net profit from previous year; beats estimates
IT major L&T Infotech has reported stellar earnings in the Apr-Jun 22 period, aided by strong growth across verticals. The company also had strong momentum in deal wins during the period. Here are the major highlights from the earnings report.
Larsen & Toubro Infotech Q1 Revenue rises- Larsen and Toubro Infotech (LTI) reported its best quarter till date in terms of revenue. The revenue reported for Apr-Jun 22 was Rs 4,522.8 crore, a growth of 30.6% as compared to the previous year and 5.1% as compared to the previous quarter. In constant currency, the revenue increased by 2.9% from Jan-Mar 22. In dollar terms, revenue grew 26.6% from Apr-Jun 21.
All the verticals performed well. As compared to the same period previous year, BFS grew 31.5% contributing 34.2% of total revenue, Manufacturing grew 18.3%, Hitech grew 12.8%, and Others grew 50.4%. North America contributed 68.1% of its total revenue in Apr-Jun 22 period.
Larsen & Toubro Infotech Q1 Profit rises- The company has reported a consolidated profit after tax (PAT) of Rs 633.50 crore for the quarter ended June 2022, up 27.64% from Rs 496.30 crore in the same quarter last year. As compared to the previous quarter, profit was almost flat compared to the reported profit of Rs 637 crore in Jan-Mar 22.
L&T Infotech Q1 earnings: Margins Decline- The EBITDA (earnings before interest, taxes, depreciation, and amortization) margins declined both sequentially and compared to last year. The EBITDA margin for Q1FY23 (Apr-Jun 22) was 18.4%, down from 18.7% in the year-ago period and 19.7% in Q4FY22 (Jan-Mar 22). The EBIT margins also declined to 16%. The Net Income Margin for the first quarter was 14%.
LTI Q1FY23: Attrition and headcount- The attrition rate decreased marginally from 24% in Jan-Mar 22 to 23.8% in the period under review. The company hired over 2118 employees in the Apr-Jun 22 period taking the total headcount to 48,766.
Larsen & Toubro Infotech results: New clients- The company added 11 new clients in the Apr-Jun quarter taking the total active client count to 497. The company now has 76 clients in the $5 million bucket and 208 clients in the $1 million plus bucket. One of the largest financial institutions in the Middle East has selected LTI for a multi-year managed services contract to transform their channels landscape under the “Change the Bank” initiative.
LTI Q1 results: Management commentary: "The company’s healthy pipeline will ensure that it maintains large deal momentum. Our sustained net headcount addition reflects our confidence and continued focus to deliver strong growth in FY23." Nachiket Deshpande, Chief Operating Officer & Executive Board Member, L&T Infotech.
Following the strong earrings, Larsen & Toubro Infotech share price rose 2% to Rs 3,945.
Has LTI reported strong growth?
LTI has reported a decent set of numbers for Q1FY23. However, the margins are lower which may impact the share price going forward.
Is LTI a debt-free company?
Yes, LTI, like most IT companies, is almost debt free.
Will LTI merge with Mindtree?
As per reports, the merger process of Larsen & Toubro Infotech (LTI) and Mindtree will be completed by December, Mindtree CEO has confirmed the same. During this period, both companies will continue to operate independently.