LTIMindtree, the merged entity of Larsen and Toubro Infotech (LTI) and Mindtree, on Friday, January 20, reported a 15.8 percent quarter-on-quarter (QoQ) decline in net profit at Rs 1,001 crore for the third quarter ended December 31, 2022.

In the corresponding quarter last fiscal, the company posted a net profit of Rs 1,188 crore. CNBC-TV18 Polls had predicted a profit of Rs 1,070 crore for the quarter under review.

Total income stood at Rs 8,620 crore during the period under review, up 4.8 percent against Rs 8,228 crore in the corresponding quarter.

Also Read: PVR back in black in Q3 with regional movies setting box office afire

At the operating level, EBIT (earnings before interest and tax) declined 16.9 percent to Rs 1,196.7 crore in the third quarter of this fiscal over Rs 1,439.7 crore in the second quarter of this fiscal. EBIT margin stood at 13.9 percent in the reporting quarter.

The company's US dollar revenue was at $1,046.7 million for the third quarter, up 2.4 percent against $1,023 million in the second quarter. The revenue growth, in constant currency terms, was 1.9 percent QoQ and 16.3 percent QoQ.

Also Read: Reliance Jio Q3 Results: Telco registers over 50% margin for the fourth consecutive quarter

The company's board recommended an interim dividend of Rs 20 per equity share and the record date has been fixed as January 31, 2023. As of December 31, 2022, the company has 723 active clients.

“We are pleased to report a strong Q3 FY23, our first as LTIMindtree," Debashis Chatterjee, chief executive officer, and managing director of the combined entity said.

The combined entity has started out with a $1 billion quarterly revenue run rate, a top-quartile constant currency year-over-year revenue growth of 16.3 percent and a robust order inflow of $1.25 billion, he added.

The company expects its sequential growth momentum to accelerate in Q4 as the impact of furloughs eases.

"As expected, our Q3 profitability has seen a one-off impact of merger-related integration cost to the tune of 100 basis points. With the bulk of the integration cost behind us and in view of the growth tailwinds ahead, our endeavour is to return to our normalised profitability in Q4," Chatterjee told reporters during the company's earnings call.

While the company sees a higher level of caution baked into the spending plans across sectors on account of macroeconomic dynamics "there have been no program cancellations to date".

"Although some clients have deferred certain projects and are taking relatively longer to make decisions, the overall focus on longer-term transformation remains intact across sectors," he said.

The results came after the close of the market hours. Shares of LTIMindtree ended at Rs 4,272.20, up by Rs 27.90, or 0.66 percent, on the BSE.

First Published:Jan 20, 2023 7:17 PM IST