Larsen and Toubro Infotech (LTI), a subsidiary of construction major Larsen & Toubro (L&T), has posted a net profit of Rs 637.5 crore for the fourth-quarter ended March 31, beating analysts’ estimates.
A consensus estimate of Bloomberg analysts was expecting the firm to post a net profit of Rs 631 crore for the reporting quarter.
The global technology consulting and digital solutions company’s net profit for the reporting quarter rose 4.08% from Rs 612.5 crore recorded in the sequential December quarter, and 16.8% from Rs 545.7 crore during the same quarter of last financial year, it said in a regulatory update.
LTI’s consolidated revenue from operations rose 3.96% to Rs 4,301.6 crore from Rs 4,137.6 crore recorded during the sequential December quarter, and a 31.57% rise from Rs 3,269.4 crore from the year-ago period, it added.
“Our growth has been broad-based across verticals, service lines, client buckets and geographies. The year has seen the highest new client openings and net headcount additions. In the fourth quarter, we won four large deals with net new Total Contract Values (TCV) of over $80 million. Our deal pipeline continues to be robust, and we remain confident of maintaining industry leading growth in the coming year as well,” LTI chief executive officer and MD Sanjay Jalona said.
“Verticals wise, BFSI is up 37% on a year-on-year basis, hi-tech and media and entertainment up 37%, others which includes services and India businesses was up 34%. This time, all service lines have grown upwards of 20% and growth in analytics, artificial intelligence and cognitive was 35% and enterprise integration and mobility 38%. All jewels (regions) have been strong, with North America, Europe and India recording the highest growth,” he said.
However, the highlight of the quarter was the company’s revenue crossing $2 billion in revenues, the strongest since its listing, Jalona added.
LTI recorded revenue of $2.1 billion for FY22, recording a 25.9% year-on-year growth, and on a constant currency basis, the revenue rose 25.8%. The company’s board has approved a final dividend of Rs 30 per share.
“We are entering FY23 with strong tailwinds, which include the strong exit rate of Q4 and large deals that we have closed. We have a robust pipeline including that of large deals,” Jalona said.
Jalona also said he would not comment on the reports of the parent L&T weighing a merger between two of its publicly traded software firms, Mindtree and LTI.