LTIMindtree Q4 results: Profit flat at ₹1,114 cr; declares dividend of ₹40

LTIMindtree, the merged entity of Larsen & Toubro Infotech (LTI) and Mindtree, logged net profit of ₹1,114 crore for the fourth quarter ended March 31, 2023, which was flat as compared with ₹1,109 crore clocked in the same period last year. On a quarter-on-quarter basis, profit rose 11.4% from ₹1,000 crore in the December quarter of FY22.

The L&T group company reported revenue from operations at ₹8,691 crore, up 22% as against ₹7,128 crore in the corresponding quarter a year ago. Sequentially, the revenue grew 0.8% from ₹8,620 crore in Q3FY23.

In dollar terms, net profit dropped 7.8% YoY to $135.6 million, while it grew 11.6% as compared to the December quarter of 2022. The revenue rose 11.9% YoY and 1% QoQ to $1,057.5 million during the quarter under review.

For the full financial year, profit grew 11.7% YoY to ₹4,410.3 crore, while revenue climbed 27.1% to ₹33,183 crore. The dollar revenue and profit for FY23 stood at $4,105.7 million and $545.7 million, respectively.

“We are pleased to report a strong FY23, with a broad-based full year revenue growth of 19.9% in constant currency,” says Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree.

“Client requirements have changed over the last quarter, and we are now meeting the new requirements to deliver cost savings which are being directed to fund in flight transformation programs,” he adds.

As per the exchange filing, the order inflow for the quarter stood at $1.35 billion, and for the full-year it was $4.87 billion. The IT services firm added 31 new clients for Q4 and increased its count of $50 million plus customers by 2 to 13.

The board of the company also declared a final dividend of ₹40 for the financial year ended March 31, 2023 on equity shares of ₹1 each. In the past 12 months, it has declared an equity dividend of ₹50 per share.

As of March 31, 2023, the employee count stood at 84,546, while the attrition rate was 20.2%.

Ahead of Q4 results, shares of LTIMindtree closed 3.89% higher at ₹4,320.30 apiece on the BSE. Early today, the IT major opened higher at ₹4,189.95, against the previous closing price of ₹4,158.60, while it touched an intraday high and low of ₹4,351.90 and ₹4,161.75, respectively, during the session.

Last December, the Larsen & Toubro (L&T) Group companies Larsen & Toubro Infotech (LTI) and Mindtree were merged to create 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. Parent company L&T holds a 68.69% stake in the merged entity, LTIMindtree. With a market capitalisation of ₹1.27 lakh crore, the merged entity, LTIMindtree, is the country's fifth-largest IT services provider by market cap after Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies.