L&T Infotech Q3 profit rises 18%, revenue jumps 31%

Larsen & Toubro Infotech (L&T Infotech) came up with better-than-expected results for the third quarter ended December 31, with both net profit and revenue growing faster than projections of brokerage houses.

The technology consulting and digital services company of the L&T Group posted a net profit of Rs 612.5 crore, up 18% over the same period the previous year and notched a sequential growth of 11% compared with the second quarter ended September 30.

Revenue rose 9.8% sequentially and 31.2% over Q3 FY21 to Rs 4,137.6 crore. In US dollars, revenue at $553 million translated into a growth of 8.7% quarter on quarter and 29.3% year on year.

Constant currency revenue growth was pegged at 9.2% quarter on quarter and 30.1% year on year.

The company’s share price skid 2.6% to Rs 6,692.4 each on Wednesday in a weak Mumbai market. The company declared results after trading stopped for the day.

Other Key Highlights:

1) EBITDA and EBIT margins improved marginally to 20.1% and 17.9%, respectively, from 19.5% and 17.2% in the second quarter. But this was much lower than the margins a year ago: 23.2% and 20.6%, respectively.

2) It added 13 net clients during the quarter including 27 new ones.

3) It added one client in the $50-100 million range and two in the $5-10 million range.

4) Total headcount was 44,200 as against 42,382 in the previous quarter.

5) Attrition rose to 22.5% compared to 19.6% in Q2 and 12.4% in Q3 the previous year.

Management commentary

Sanjay Jalona, Chief Executive Officer and Managing Director, said the company was happy to report 9.2% QoQ revenue growth in constant currency.

“This is our best ever quarterly sequential growth since listing,” he said.

“Our ongoing revenue momentum sets us up to deliver our highest year-over-year growth as a publicly listed company. We continue to have incredible conversations with our customers on their digital transformation journeys,” he added.