IT company LTIMindtree on Friday posted a consolidated net profit of Rs 1,000.7 crore for the December quarter, a 4.6 per cent decline over the year-ago period due to one-off impact of merger-related integration cost.
In November last year, L&T Group had announced operationalisation of the merger of Mindtree with LTI (Larsen & Toubro Infotech), creating the country's sixth-largest software firm.
The company's net profit stood at Rs 1,000.7 crore in the December 2022 quarter, compared to Rs 1,050.1 crore in the same period previous year.
The revenue from operations came in at Rs 8620 crore for just-concluded Q3FY23, up 25.2 per cent on a year-on-year basis.
We are pleased to report a strong Q3 FY23, our first as LTIMindtree," Debashis Chatterjee, Chief Executive Officer and Managing Director of the combined entity said.
The combined entity has started out with a USD 1 billion quarterly revenue run rate, a top-quartile constant currency year-over year revenue growth of 16.3 per cent and a robust order inflow of USD 1.25 billion, he added.
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The net profit was 15.8 per cent lower when compared to the previous sequential quarter (September quarter), while the revenue translated into a growth of 4.7 per cent quarter on quarter.
The company expects its sequential growth momentum to accelerate in Q4 as the impact of furloughs eases.
"As expected, our Q3 profitability has seen a one-off impact of merger-related integration cost to the tune of 100 basis points. With the bulk of the integration cost behind us and in view of the growth tailwinds ahead, our endeavour is to return to our normalised profitability in Q4," Chatterjee told reporters during the company's earnings call.
While the company sees a higher level of caution baked into the spending plans across sectors on account of macroeconomic dynamics "there have been no program cancellations to date".
"Although some clients have deferred certain projects and are taking relatively longer to make decisions, the overall focus on longer-term transformation remains intact across sectors," he said.
For now, there is a marked emphasis on initiatives that generate cash conservation and speedier return on investment.
"In a number of instances, clients are focusing on cost take-out to fund their transformation projects. However, the pressing urgency to drive technology-led innovation to prepare for future opportunities holds significant long-term upside for our full stack end-to-end capabilities and people," Chatterjee said.
He said that the banking, financial services and insurance (BFSI) business surged 22 per cent year on year; this portion alone is at an annual revenue run rate of USD 1 billion.
"The continued revenue momentum was driven by significant deal wins, including rate increases and a growing pipeline of large deals. While marketing tech and operations, cloud, risk and compliance and M&A integration drive sustained demand, we are seeing cost optimisation, customer experience transformation and regulatory or efficiency-focused initiatives emerge as key areas of focus," Chatterjee informed.
The company's headcount stood at 86,462 as of December 31, 2022. The trailing 12 months attrition was at 22.3 per cent. The Board of Directors has recommended an interim dividend of Rs 20 per equity share of par value Re 1 each.
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