LTI constant currency revenues grow 21.6% YoY; Net Profits up 23.2% YoY

Rhea-AI Summary

Larsen & Toubro Infotech (LTOUF) reported its Q2 FY23 results, showcasing strong revenue growth. In USD, it achieved USD 601.0 million in revenue, with 3.6% QoQ and 18.1% YoY growth. Constant currency revenue growth was 4.6% QoQ and 21.6% YoY. In INR, revenue reached INR 48,367 million (up 6.9% QoQ and 28.4% YoY), while net income was INR 6,798 million (up 7.2% QoQ and 23.2% YoY). The company is near completing its merger with Mindtree, expected to enhance its service offerings and customer base.

Positive

• Revenue grew to USD 601.0 million, up 3.6% QoQ and 18.1% YoY.
• Constant currency revenue growth of 4.6% QoQ and 21.6% YoY.
• Net income reached INR 6,798 million, an increase of 7.2% QoQ and 23.2% YoY.
• Upcoming merger with Mindtree anticipated to boost capabilities and customer base.
• Secured multiple strategic partnerships across various sectors.

Negative

• None.

MUMBAI, India--(BUSINESS WIRE)-- Larsen & Toubro Infotech (BSE code: 540005, NSE: LTI), a global technology consulting and digital solutions company, announced its Q2 FY23 results today.

In US Dollars:

• Revenue at USD 601.0 million; growth of 3.6% QoQ and 18.1% YoY
• Constant Currency Revenue growth of 4.6% QoQ and 21.6% YoY

In Indian Rupees:

• Revenue at INR 48,367 million; growth of 6.9% QoQ and 28.4% YoY
• Net Income at INR 6,798 million; growth of 7.2% QoQ and 23.2% YoY

“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”

- Sudhir Chaturvedi, President Sales & Executive Board Member

“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.”

- Nachiket Deshpande, Chief Operating Officer & Executive Board Member

Recent Deal Wins

• Selected by a leading health care 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. LTI will also provide consulting and architectural guidance to build a technology roadmap
• 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 to implement Duck Creek solutions for their producer, policy and billing functions and to ensure data analytics and insights
• Chosen by a leading petrochemical company for a managed services deal involving outsourcing of support operations for their enterprise applications by streamlining processes and building efficiencies through transformation initiatives
• 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 world-wide 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

Analyst Recognitions

• LTI Positioned as a Major Contender and Star Performer in Everest Group's SI Capabilities on AWS PEAK Matrix Assessment 2022
• LTI named as a ‘Leader’ in ISG Provider Lens™ Enterprise Service Management Service & Solutions 2022 quadrant report (ESM Consulting Services quadrant for US)
• LTI recognized as an Honorable Mention in the 2022 Gartner® Magic Quadrant™ for Public Cloud IT Transformation Services
• LTI Positioned as a Major Contender and Star Performer in Everest Group's SI Capabilities on Azure PEAK Matrix Assessment 2022
• Fosfor Aspect recognized in Forrester Report : Ten Lessons From Intelligent Document Extraction And Processing Use Cases

*Gartner, “Magic Quadrant for Public Cloud IT Transformation Services”, July 20, 2022. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose

Awards & Other Business Highlights

• LTI has been certified as a water-positive company based on a third-party audit
• LTI Wins Golden Peacock Award for Risk Management 2022 in the IT services and consulting category
• LTI is a Great Place to Work Certified in Poland

About LTI

LTI (NSE: LTI) is a global technology consulting and digital solutions Company helping 500 clients succeed in a converging world. With operations in 33 countries, we go the extra mile for our clients and accelerate their digital transformation journeys. Founded in 1997 as a subsidiary of Larsen & Toubro Limited, our unique heritage gives us unrivalled real-world expertise to solve the most complex challenges of enterprises across all industries. Each day, our team of more than 50,000 LTItes enable our clients to improve the effectiveness of their business and technology operations and deliver value to their customers, employees and shareholders. Find more at http://www.Lntinfotech.com or follow us at @LTI_Global.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221015005010/en/

Media Relations: Shambhavi Revandkar, PR & Media Relations – India

Tel: +91-22-6776 8625

Email: shambhavi.revandkar@lntinfotech.com

Source: Larsen & Toubro Infotech

FAQ

What were Larsen & Toubro Infotech's revenue results for Q2 FY23?

Larsen & Toubro Infotech reported revenue of USD 601.0 million for Q2 FY23, showing growth of 3.6% quarter-over-quarter (QoQ) and 18.1% year-over-year (YoY).

What is the expected impact of the Mindtree merger for LTOUF?

The merger with Mindtree, expected to finalize by the end of this calendar year, is anticipated to enhance LTOUF's service portfolio and customer base, creating significant value.

How did LTOUF's net income perform in Q2 FY23?

Larsen & Toubro Infotech's net income for Q2 FY23 reached INR 6,798 million, reflecting a 7.2% increase QoQ and 23.2% increase YoY.

What major deals has LTOUF secured recently?

LTOUF has secured several significant deals, partnering with a leading North American healthcare system, a global bank, and various Fortune 500 companies for digital transformation initiatives.

What recognitions has LTOUF received recently?

LTOUF was recognized as a 'Leader' in the ISG Provider Lens and positioned as a Major Contender in Everest Group's assessments for its service capabilities.