LTIMindtree, the merged entity of Larsen & Toubro Infotech (LTI) and Mindtree, has reported a drop of 4.7% in net profit to ₹1,000.7 crore for the December 2022 quarter, compared to ₹1,050.1 crore in the year ago period. On a sequential basis, the profit dropped 15.8% from ₹1,189 crore in the September quarter of the current fiscal.
The consolidated revenue from operations grew 25.3% to ₹8,620 crore in the quarter under review against ₹6,880.7 crore in the same quarter last fiscal. However, on a quarter-on-quarter basis, revenue dropped 4.7% from ₹8,227.8 crore in Q2 FY23. In constant currency terms, the revenue rose 16.3% YoY.
During the quarter under review, the gross margin of the company fell to 28.6% as compared to 32.3% in the corresponding period of the year-ago quarter.
The board of the company has also declared an interim dividend of ₹20 per equity share of ₹1 each. The company has fixed January 31, 2023, as the 'Record Date' for the purpose of distribution of interim dividend.
“The combined entity (after the merger of LTI and Mindtree) has started out with a $1 billion quarterly revenue run rate, a top-quartile constant currency year-over-year revenue growth of 16.3%, and a robust order inflow of $1.25 billion," said Debashis Chatterjee, MD and CEO of LTIMindtree.
“Clients across sectors are evincing keen interest in our unique value proposition spanning core to experience to edge. The client imperative to dial up technology-led innovation for future-readiness holds significant long-term upside for our full-stack offerings and cross-industry exposure, boosting our endeavour to deliver industry-leading revenue growth in the future as well,” he added.
During the quarter under review, the L&T group companies completed their merger, one of the largest in the Indian IT sector, in a share swap deal at a ratio of 73 shares of LTI for every 100 shares of Mindtree. LTIMindtree made its market debut on December 5 after 12 crore equity shares of ₹1 each were listed and permitted for trading on the exchange following the merger of erstwhile Mindtree, which was delisted on November 23, with LTI. Following the amalgamation, LTIMindtree has become the country's fifth-largest IT services provider by market cap after Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. The parent company, Larsen & Toubro (L&T), holds a 68.73% stake in the new entity.
Ahead of Q3 earnings announcement, LTIMindtree shares closed 0.6% higher at ₹4,269.85 on the BSE.
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