L&T Infotech Q2 Results FY2023, Revenue up by 28.4%

On 15th October 2022, L&T Infotech announced its quarterly results for the second quarter of FY2023.

Q2FY23 Performance updates:

In USD: 

- The Revenue stood at $ 601.0 million; with a growth of 3.6% QoQ and 18.1% YoY 
- The Constant Currency Revenue growth of 4.6% QoQ and 21.6% YoY was reported

In INR:

- The Revenue was reported at Rs. 48,367 million; a growth of 6.9% QoQ and 28.4% YoY 
- Net Income stood at Rs. 6,798 million; with a growth of 7.2% QoQ and 23.2% YoY
- EBITDA stood at Rs. 9,117 million, with a growth of 9.7% QoQ and 24.3% YoY.
- The Net profit was reported at Rs. 6798, with a growth of 7.2% QoQ and 23.2% YoY

Segment Highlights:

- ADM and Testing contributed to revenue by33.5%, with a growth of 15.8% YoY
- Enterprise Solutions contributed to revenue by 28.7%, with a growth of 11.3% YoY
- Cloud Infrastructure and Security segment contributed to revenue by 12.7% with a growth of 7.3% YoY
- Analytics, AI and Cognitive segment reported revenue at 14.5%, with a growth of 41.4% YoY
- Enterprise Integration and Mobility segment contributed to revenue by 10.6%, with a growth of 34.6% YoY

Geographical Highlights:

- The North American market reported a revenue mix of 69% in Q2FY23.
-The European market reported a revenue mix at 15.5%
- The other markets posted a revenue mix at 8.1%
- The Indian market posted a revenue mix at 7.4%

Across Verticals:

- The revenue mix from BFSI vertical stood at 34.2% and from Insurance stood at 13.7%
- For the Manufacturing segment vertical, the revenue mix was reported at 14.3%
- Energy and Utilities revenue mix stood at 9.6% 
- Retail & CPG and Pharma revenue mix was at 10% in Q2FY23
- High-Tech, Media and Entertainment’s revenue mix for Q2FY23 was at 10.6%
- For other verticals revenue mix stood at 7.6% for Q2FY23.

Deals Won:

- Selected by a leading healthcare system based in North America as strategic partner for transformation programs involving cyber security, clinical experience, enterprise data management, governance and digital business technology 
- Chosen by the provider of consultancy and IT solutions to an international organization involved with global conflict resolution and humanitarian assistance, to transform their digital solution landscape 
- Selected by a Global Fortune 500 multinational information technology company to design and implement SAP and data solutions to improve business KPIs.
- Selected by a manufacturer of vertical transportation systems to operate and transform their global JD Edwards solution 
- A leading provider and manufacturer of heating and cooling solutions and equipment has chosen LTI as its partner for one of its largest and most complex ERP transformation initiatives at one of its plant locations 
- Selected by the newly formed division of a leading property and casualty insurer 
- Chosen by a leading petrochemical company for a managed services deal 
- Selected by a global bank for a digital testing deal to support its digital transformation initiatives 
- Selected by a Global Fortune 500 company and a worldwide leader in beauty and cosmetics to deliver digital integration of existing applications with their new core S/4 solution 
- Selected by a leading media & entertainment major to implement a new buying & invoicing system and enable related procurement processes and solutions to integrate with existing SAP applications 
- A refinery and petrochemical company has selected LTI for an end-to-end outsourcing and managed services deal resulting in improved efficiency, lower costs, better customer experience and compliance with National Cyber Authority requirements 

Commenting on the results, Nachiket Deshpande, Chief Operating Officer & Executive Board Member of L&T Infotech said: “We are happy to be on the last leg of the approval process for the LTI Mindtree merger and are most likely to combine forces by the end of this calendar year. The merged company will bring together complimentary portfolios and a large customer base creating extraordinary value for all stakeholders.”

Commenting on the results, Sudhir Chaturvedi, President Sales & Executive Board Member of L&T Infotech said: “We are happy to report 21.6% YoY revenue growth in constant currency. We remain excited about the proactive conversations we are having with our customers and see increased traction in the cloud and analytics space. The strength of our pipeline and our sustained net headcount addition will continue to fuel our growth”.

Post-results the share price of L&T Infotech dropped by 0.57%