How were the quarterly numbers of L&T Infotech for the Mar-22 quarter, compared to other IT companies in India?

L&T Infotech saw its Q4 net profit increase by 16.84% to Rs.637 crore on the back of a sharp surge of 15.4% in its active clients. Let us first focus on top line. For Q4, L&T Infotech reported 31.57% higher sales revenues at Rs.4,302 crore. However, constant currency growth was lower due to cross currency headwinds. In terms of verticals mix, BFSI was 46.1%, manufacturing 16.8%, Hitech, Media, Entertainment 11.7% and CPG, Retail 10.3%.

Let me turn to the operating performance of LTI first. Operating profits in Q4 were up 19.05% yoy at Rs.862 crore. Operating margins at 20.03% were lower 211 bps yoy and 46 bps qoq. LTI added 25 new clients in Q4 with 8 above $50 million. The utilization rate including trainees stood at 80.1%, hinting at 20% on the bench. Like for other IT companies, the attrition for LTI went up sharply from 12.3% last year to 24% in the Mar-22 quarter.

In terms of the bottom line, the net profits were up 16.84% at Rs.637 crore as addition of higher value and better margin clients boosted the bottom line despite cost pressures on the manpower, attrition and the travel front. There was robust growth in orders and client overall. PAT margins tapered from 16.68% in Mar-21 quarter to 14.81% in Mar-22 quarter. On a sequential basis, net profit margins were higher by 2 basis points over Dec-21.