LTI Mindtree Q4FY23 PAT flat at Rs1,114 crore on sharp surge in employee costs
LTI Mindtree Ltd reported 21.9% growth in net revenues for the March 2023 quarter at Rs8,691 crore. The revenues were up by just 2% on a sequential basis and the sequential pressure came from a slowdown in top line growth due to weak tech spending as well as pricing pressure in its core global markets; especially the BFSI business.
For the quarter, the company witness top line growth across all the five major verticals viz. BFSI, Hi-Tech, Manufacturing, Retail and Healthcare. However, in terms of yoy operating profit growth, BFSI continued to show strong operating profits growth but manufacturing was flat and hi-tech was lower yoy. Operating profits in the retail business were also higher.
Financial highlights for Mar-23 compared yoy and sequentially
| LTI Mindtree | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 8,691.00 | ₹ 7,128.00 | 21.93% | ₹ 8,520.00 | 2.01% |
| Net Profit (Rs cr) | ₹ 1,113.70 | ₹ 1,108.60 | 0.46% | ₹ 1,000.50 | 11.31% |
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| Diluted EPS (Rs) | ₹ 37.57 | ₹ 37.43 |
| ₹ 33.78 |
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| Net Margins | 12.81% | 15.55% |
| 11.74% |
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Net profits for the March 2023 quarter were flat at Rs1,114 crore on a surge in the employee costs, especially after the merger of L&T Infotech and Mindtree Ltd. The board of directors of LTI Mindtree have declared a dividend of Rs40 per share and this is subject to final shareholder approval. For the full year FY23, the constant currency (CC) revenue growth stood at 19.9% while the order inflow during FY23 stood at $4.87 billion.