L&T Infotech Q4 results | Profit rises 17% YoY to Rs 637 cr, revenue grows 31.6% to Rs 4,302 cr

For the full year, the dollar revenues stood at $2,102.5 million with a YoY growth of 26 percent. Constant currency revenue growth for the year was 25.8 percent.

“We are delighted to cross the $2-billion revenue milestone with record growth of 26 percent in FY22, our strongest since listing”, said Sanjay Jalona, Chief Executive Officer & Managing Director.

“Our growth has been broad-based across verticals, service lines, client buckets and geographies. The year has seen the highest new client openings and net headcount additions," he added.

Revenue by vertical & geography

All the business verticals of the company registered robust double digit on year growth and mid-single digit growth on QoQ basis. BFS vertical grew the most with 35.5 percent on year growth and was followed by High-tech, media & entertainment which grew at 27.1 percent year on year. Manufacturing and energy & utilities business verticals for the company witnessed an on year growth of 26.5 percent and 23 percent respectively. Consumer product group (CPG), retail & pharma and insurance verticals grew by 21.9 and 17.6 percent each.

North America continued to be the biggest contributor to the revenues of the company with a contribution of 65.6 percent to total revenues. It witnessed an on-year growth of 26.3 percent during the quarter. Europe generated 16.2 percent of the company’s revenues with a growth of 25.3 percent. Contribution from domestic business came in at 9.9 percent, growing by 42.1 percent on year while rest of world contributed 8.3 percent to the total revenues and grew by 25.5 percent on year.

Deal TCVs and Active Clients

“In Q4FY22, we won 4 large deals with net new TCV of over $ 80 million,” added Jalona. “Our deal pipeline continues to be robust, and we remain confident of maintaining industry leading growth in the coming year as well.”

The company managed to add 25 new clients during the quarter, taking to total of active clients to 486. Four clients were added in the $20 million + bucket, 1 client was added in $10 million + basket, 1 client in $5 million + category and 11 clients were added in $1 million + basket. There were other additions of smaller clients.

Margins

The supply side pressures impacted the EBITDA (earnings before interest, tax, depreciation and amortization) margins for the quarter which declined by 220 bps YoY from 21.9 percent to 19.7 percent for the quarter.

The EBIT (earnings before interest and tax) margins for the quarter stood at 17.3 percent as compared to 19.4 percent in the corresponding quarter last year.

Utilization and head count

The employee utilization (including trainees) for the quarter declined by 70 bps on year to 80.1 percent while excluding the trainees the utilization level was 81.5 percent compared to 82.2 percent during the year ago period.

The company had a total headcount of 46,648 employees at the end of the quarter with attrition on (Last Twelve Months) basis surging to 24 percent as compared to 22.5 percent in the December quarter and 12.3 percent during the same quarter of last year.

Dividend

For FY22, the company has recommended a final dividend of Rs 30 per equity share. Total dividend for FY22 is Rs 55 per equity share, including the interim dividend of Rs 15 and special dividend of Rs 10 per equity share declared in October 2021 and July 2021, respectively. The dividend payout ratio for the year stands at 41.9 percent.

The L&T Infotech stock closed at Rs 5,472.35, down Rs 401.3, or 6.8 percent, on the National Stock Exchange on April 19. The stock has generated returns of 34.7 percent during the past year but is down 10.5 percent in the past month.