Larsen and Toubro Infotech (LTI), a subsidiary of construction major Larsen & Toubro (L&T), has posted a marginal fall of 0.5% in consolidated net profit at Rs 634.4 crore for the quarter ended June 30. In comparison, the technology firm had posted a net profit of Rs 637.5 crore in the sequential fourth quarter ended March.
However, the company’s earnings beat Bloomberg analysts’ consensus estimate, who were expecting the firm to post a net profit of Rs 578.6 crore in the first quarter of this financial year.
On a year-on-year basis, the global technology consulting and digital solutions company’s net profit rose 27.70% from Rs 496.8 crore recorded in the June quarter of last fiscal, it said in a statement.
LTI’s consolidated revenue from operations rose 5.14% to Rs 4,522.8 crore from Rs 4,301.6 crore recorded during the previous March quarter, and a 30.62% increase from Rs 3,462.5 crore recorded during the year-ago period, it added.
“LTI posted a 2.9% q-o-q constant currency growth, while that on a year-on-year basis was 26%. We had a seasonal pass-through (licence payment) in the fourth quarter and our revenue growth was adjusted for that, or else it would have been 5.1% in constant currency terms. We also closed four large deals with a net new TCV (total contract value) of $79 million during the quarter, and two of these are with global Fortune 500 clients,” LTI president sales and executive board member Sudhir Chaturvedi said.
LTI, together with Mindtree, also signed one large deal (with a Europe-based travel technology company) during the quarter.
“This is a playbook example of how we plan to leverage our joint capabilities to drive growth across both companies in the large deal space. Our large deal pipeline continues to be at the same level as of the fourth quarter and we have a pipeline of over $2 billion at this point,” Chaturvedi added.
Earlier in May, Larsen & Toubro Infotech and Mindtree – both subsidiaries of L&T — announced plans to merge the companies to create a $3.5-billion IT services provider.
“A steering committee has been set up, which is meeting regularly to oversee the integration. The regulatory process also remains on track largely, and we have received approvals from the stock exchanges,” LTI wholetime director and COO Nachiket Deshpande said.
LTI is also on track with its hiring plans, Deshpande said, adding that its hiring engine continues to “work well”. “Our headcount addition was over 2,100 in the first quarter, which has been in line with the previous quarters as we continue to build pay for strong Q2. We also remain on track for our fresher hiring plan to hire at least 6,500 freshers in FY23,” he added.