Last week, Larsen & Toubro Infotech (LTI) announced its second-quarter results for FY23. The company recorded revenue growth of 21.6% in constant currency and a profit of 18.8 per cent—the revenue growth in USD stood at 18.1 per cent.
Sudhir Chaturvedi, executive board member and president of sales at L&T Infotech, said they are excited about the proactive conversations they are having with their customers and see increased traction in the cloud and analytics space. He said that the company's growth is fueled by its strong pipeline, alongside sustained growth in its net headcount addition.
Revenue breakdown by service offerings
L&T Infotech provides a gamut of services to customers, accelerating their digital transformation with LTI's Mosaic platform, enabling mobile, social, analytics, AI, IoT and cloud journeys. The service offered by L&T Infotech can be further categorised into ADM (application development management) and Testing, enterprise solutions, cloud infra and security, analytics, AI and cognitive, and enterprise integration and mobility.
In FY23 Q2, the company recorded 33.5 per cent revenue growth from ADM and testing services, followed by enterprise solutions and analytics and AI services at 28.7 per cent and 14.5 per cent, respectively. On the other hand, its revenue from cloud infrastructure and security witnessed a decline at 7.3 per cent year-on-year growth in USD.
On the other hand, its revenue from analytics, AI and cognitive services noted a 41.4 per cent growth, followed by enterprise integration and mobility at 34.6 per cent year-on-year growth in USD.
With operations in 33 countries, L&T Infotech recorded 69 per cent revenue growth coming from North America and 15.5 per cent from Europe. Meanwhile, India accounted for 7.4 per cent revenue growth. In FY23 Q2, L&T Infotech added about 22 clients, compared to last quarter, where it added 29 customers. The company has about 500 active customers to date. Currently, the company's headcount stands at 50,000 employees. At the earnings call, it announced its plans to hire 6,500 freshers in FY23.
Attrition balloons
L&T Infotech recorded the highest-ever attrition at 24.3 per cent, compared to last year, where it stood at 19.6 per cent. L&T Infotech’s COO Nachiket Deshpande said that the company expects this number to cool off considering incoming supply and slowdown in hiring. “We have a few quarters to go before attrition comes down materially,” he added.
Read: Finally, A Sigh of Relief for Attrition Battered Indian IT
Meanwhile, the merger of L&T Infotech and Mindtree is also underway. In May 2022, the Boards of Directors of LTI and Mindtree approved a composite scheme of amalgamation under the Larsen & Toubro Group. LTI and Mindtree combine strengths to create an efficient and scaled-up IT services provider exceeding $3.5 billion.
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