LTIMindtree Reports Strong Performance in Q3 FY23

Rhea-AI Summary

LTIMindtree announced its Q3 FY23 results, showcasing a 16.3% year-over-year revenue growth in constant currency. The company's revenue reached $1,046.7 million, a 14.0% increase year-over-year, although net profit declined by 17.7% quarter-over-quarter to $121.5 million. With a robust order inflow of $1.25 billion, the company reported 723 active clients and notable multiyear deals across various sectors. The Board of Directors has also recommended an interim dividend of ₹20 per equity share. Overall, LTIMindtree is well-positioned for future growth despite some profit margin pressures.

Positive

• Revenue growth of 16.3% YoY in constant currency.
• Order inflow at USD 1.25 billion indicates strong demand.
• Increased number of high-value clients, with 374 clients generating $1 million+.

Negative

• Net profit decreased by 17.7% QoQ and 13.3% YoY, indicating profitability challenges.

Constant Currency Revenue up 16.3% YoY; Order Inflow at USD 1.25 billion

MUMBAI, IndiaMUMBAI, India--(BUSINESS WIRE)-- LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company, announced its consolidated results today for the third quarter ended December 31, 2022, as approved by its Board of directors.

“We are pleased to report a strong Q3 FY23, our first as LTIMindtree,” said Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree. “The combined entity has started out with a USD 1 billion quarterly revenue run rate, a top-quartile constant currency year-over-year revenue growth of 16.3%, and a robust order inflow of USD 1.25 billion. Our performance speaks to our steadfast client focus through the merger and our resilient client and solutions portfolio. Clients across sectors are evincing keen interest in our unique value proposition spanning core to experience to edge. The client imperative to dial up technology-led innovation for future-readiness holds significant long-term upside for our full-stack offerings and cross-industry exposure, boosting our endeavour to deliver industry-leading revenue growth in the future as well.”

Key financial highlights:

Quarter ended December 31, 2022

In USD:

- Revenue at $1,046.7 million (growth of 2.4% q-o-q / 14.0% y-o-y)

- Net profit at $121.5 million (decline of 17.7% q-o-q / 13.3% y-o-y)

In INR:

- Revenue at ₹86,200 million (growth of 4.8% q-o-q / 25.3% y-o-y)

- Net profit at ₹10,007 million (decline of 15.8% q-o-q / 4.7% y-o-y)

Other highlights:

Clients:

- 723 active clients as of December 31, 2022

- $1 million+ clients increased by 13, total 374

- $5 million+ clients increased by 7, total 144

- $10 million+ clients increased by 4, total 81

People:

- 86,462 professionals as of December 31, 2022

- Trailing 12 months attrition was 22.3%

Deal Wins

• A leading digital marketplace offering end-to-end solutions for the automotive industry signed a multiyear deal with LTIMindtree as its anchor digital transformation partner to consolidate all digital initiatives for enhancing efficiencies and accelerating time-to-market.
• A leading public utility company based in North America chose LTIMindtree as a long-term strategic partner for an infrastructure and cloud managed services deal.
• An energy and utilities company selected LTIMindtree to enable its digital transformation journey towards green energy.
• A North American energy company signed a managed services deal with LTIMindtree for a data, cloud-enablement, and infrastructure program.
• A leading global provider of transportation solutions selected LTIMindtree to modernize its core operations leveraging a cloud-based business applications platform.
• A North American P&C insurer selected LTIMindtree as a strategic partner for driving the transition from Quality Assurance to Quality Engineering. As part of this deal, LTIMindtree will drive an automation-first mindset to deliver efficiency and productivity improvements.
• A leading hospitality company awarded LTIMindtree a multiyear contract to provide agile-based product development, testing, and support services.
• A Canada-based automobile manufacturer signed a multiyear Application Management Services deal with LTIMindtree.
• A leading semiconductor manufacturer and technology provider selected LTIMindtree for a multiyear contract to provide platform-led, end-user services globally.

Recognitions

• LTIMindtree Syncordis recognised as Temenos Global Delivery Partner.
• Honoured as Global Collaboration Partner of the Year by Amazon Web Services (AWS).
• Recognised as the 2023 ServiceNow Americas Emerging Service Provider Partner of the Year.
• Recognised in the 2022 Gartner®* Market Guide for Augmented Analytics for its Lumin by Fosfor product.
• Named a Leader and Star Performer in Everest Group’s Application and Digital Services in P&C Insurance PEAK Matrix® Assessment 2023.
• Named a Major Contender and Star Performer in Everest Group’s Risk & Compliance in BFS IT Services PEAK Matrix® Assessment 2023.
• Named a Major Contender and Star Performer in Everest Group’s Guidewire Services PEAK Matrix® Assessment 2023.
• Named a Major Contender in Everest Group’s Healthcare Provider Digital Services PEAK Matrix® Assessment 2023.

*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.

Announcements

The Board of Directors has recommended an interim dividend of ₹20 per equity share of par value ₹1 each.

About LTIMindtree

LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world. Powered by nearly 90,000 talented and entrepreneurial professionals across more than 30 countries, LTIMindtree — a Larsen & Toubro Group company — combines the industry-acclaimed strengths of erstwhile Larsen and Toubro Infotech and Mindtree in solving the most complex business challenges and delivering transformation at scale. For more information, please visit www.ltimindtree.com.

Earnings Conference Call and Audio Webcast

Friday, January 20, 2023 - 6:00 PM IST

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230120005205/en/

Media Relations: media@ltimindtree.com

Source: LTIMindtree

FAQ

What were LTIMindtree's Q3 FY23 revenue figures?

LTIMindtree reported revenue of $1,046.7 million for Q3 FY23, a 14.0% increase year-over-year.

How did LTIMindtree's net profit change in Q3 FY23?

The net profit for LTIMindtree in Q3 FY23 was $121.5 million, declining by 17.7% quarter-over-quarter.

What is LTIMindtree's order inflow for Q3 FY23?

LTIMindtree's order inflow for Q3 FY23 was $1.25 billion.

What dividend did LTIMindtree announce for its shareholders?

LTIMindtree's Board of Directors recommended an interim dividend of ₹20 per equity share.

How many active clients does LTIMindtree have as of December 31, 2022?

LTIMindtree has 723 active clients as of December 31, 2022.