Net profit for the three months ended March was Rs 1,114.1 crore, compared with an estimated Rs 1,110 crore a year ago.
Revenue came in at Rs 8,691 crore, up 21.9% year-on-year. The company created from the merger of erstwhile Larsen and Toubro Infotech and Mindtree Technologies started operating as a merged entity in December 2022.
The profit was estimated at Rs 1,166 crore by ET poll while revenue was estimated at Rs 8,859 crore. An ET poll of analysts had pegged 5% growth in net profit compared to last year, and a 23.1% increase in revenue.
The company said the reported numbers were comparable as the merger was effective from April 2022 and it had eliminated any inter-company revenues.
Sequentially, profit was up 11.3% while revenue grew 0.8%.
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The full year revenue stood at Rs 33,183 crore, up 27.1%, while net profit was up 11.7% on year at Rs 4,410.3 crore. The Mumbai-based firm’s employee costs were up nearly 30% on year to 5,580.7 crore while other expenses too jumped 19% to Rs 836.4 crore. The jump was mainly attributed to merger-related costs.
The company declared a final dividend of Rs 40 for the fiscal year ending March 2023.
“While we observe a cautious approach towards tech spending in general owing to macro uncertainties, clients’ focus on leveraging technology to enhance competitiveness remains intact. These clients hold a significant long-term upside for our capabilities,” said Debashis Chatterjee, MD and CEO of LTIMindtree.
Chatterjee said the deal pipeline was robust, but the company is seeing more focus of clients towards efficiency or cost takeout deals rather than the transformation. “This also means that many of the opportunities that we have right now are multi-year opportunities rather than the shorter projects of opportunity,” he added.
The firm’s operating margins expanded 250 basis points sequentially to 16.4%, as the base quarter was marred by one-time integration-related costs and more holidays in the quarter. It fell 180 basis points year on year.
It reported the total contract value of deal wins at $1.35 billion compared to $1.25 billion last quarter. The full year number stood at $4.87 billion. The company did not disclose a comparable number for the base year.
In terms of geographies, North America grew 21.5% year-on-year while Europe reported 3.9% growth.
All the verticals witnessed at least high double-digit growth on a year-on-year basis, with banking, financial services and insurance (BFSI) leading with 23% growth.
Talent Outlook
Voluntary attrition for the quarter stood at 20.2% compared to 22.3% last quarter. Net hiring was 84,546, down by 1,916 over the quarter amidst a tightening hiring ecosystem.
Chief operating officer Nachiket Deshpande said the company will onboard freshers in the first couple of quarters of FY24 unlike last fiscal where the onboarding got delayed due to the merger underway.
“We normally don’t target hiring numbers. Our hiring goals are fine-tuned with our business projections quarter to quarter,” Deshpande added.
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