History of the Company

_x000D_ LTI Mindtree Limited is an Indian multinational company specialising in information technology services and consulting. It operates as a subsidiary of Larsen & Toubro (L&T), a prominent Indian conglomerate. The company was established in December 1996 under the name L&T Information Technology Ltd, initially functioning as a subsidiary of Larsen & Toubro._x000D_ _x000D_ During 2001-2002, the company underwent a name change from L&T Information Technology Limited to Larsen & Toubro Infotech Limited, achieving the esteemed Software Engineering Institute's (SEI) Maturity Level 5 certification in the same year. In a strategic move, the engineering services segment of L&T Infotech was acquired by L&T Technology Services, a newly created subsidiary of Larsen & Toubro, during the fiscal year 2013-14._x000D_ _x000D_ In July 2016, L&T Infotech debuted in the public market through a successful initial public offering (IPO) that raised ₹1,243 crore (approximately US$184.98 million). The company later initiated a rebranding process in May 2017, adopting the name 'LTI' along with the tagline 'Let's Solve'._x000D_ _x000D_ A significant development occurred in June 2019 when Larsen & Toubro completed a hostile takeover of Mindtree, an IT company based in Bangalore. Subsequently, in May 2022, it was announced that Mindtree, an existing IT services subsidiary of Larsen & Toubro, would be merged into LTI. This merger led to the creation of LTIMindtree._x000D_ _x000D_ The merger was officially completed in November 2022, resulting in LTIMindtree becoming the 5th largest IT services provider by market capitalisation and the 6th largest by revenue. As part of the merger, shares of Mindtree were delisted, and shareholders were allotted 73 shares of LTI for every 100 shares of Mindtree they held. The parent company, Larsen & Toubro, retained a 68.73% stake in the merged entity._x000D_

Business Segments 

_x000D_ LTI Mindtree offers a comprehensive range of IT services and solutions across various domains:_x000D_

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1. Cloud and Infrastructure Services: LTIMindtree delivers cloud solutions on major platforms such as AWS, Google Cloud Platform, and Microsoft Azure. They also provide infrastructure services and consultancy to optimise and manage IT infrastructure.
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2. Data Management and Insights: LTI Mindtree specialises in data management, analytics, and insights. They help organisations harness the power of data to make informed decisions and gain valuable insights.
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3. Digital Engineering: Their digital engineering services encompass product engineering, software development, and rigorous testing to create cutting-edge digital solutions.
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4. Enterprise Application Services: LTIMindtree offers end-to-end services in the development, implementation, and maintenance of enterprise applications, helping businesses streamline their operations and enhance efficiency.
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5. Cybersecurity Solutions: LTI Mindtree provides comprehensive cybersecurity services, including risk management, threat intelligence, and compliance strategies to safeguard organisations from cyber threats.
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6. Disruptive SaaS (Software as a Service): They cater to the SaaS domain, offering services related to SaaS application development, implementation, and ongoing maintenance, enabling businesses to leverage cloud-based software solutions.
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7. Platform Operations: LTIMindtree excels in platform operations, focusing on DevOps practices, automation, and continuous monitoring to ensure the reliability and performance of IT systems.
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8. Robotic Process Automation (RPA): They provide RPA services covering process discovery, design, and implementation, helping organisations automate repetitive tasks and enhance operational efficiency.
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_x000D_ Subsidiaries of LTI Mindtree: _x000D_ _x000D_ Syncordis Software Services India Pvt Ltd: Syncordis Software Services India Pvt Ltd is an LTI (Larsen & Toubro Infotech) subsidiary recognised as a top Temenos implementation partner. With over 600 Temenos experts, they received the 2021 Service Partner of the Year award. LTI Syncordis Banking Platform, powered by Temenos and third-party applications, keeps banks competitive. LTI acquired Syncordis SA for €28.2 million in 2017, and today, LTI Syncordis is an integral part of LTI Mindtree, formed through the 2022 Mindtree-LTI merger._x000D_ _x000D_ Other than the above, LTI Mindtree has subsidiaries in more than 30 countries diversifying their services._x000D_

Key Personnel

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1. Debashis Chatterjee, Managing Director & CEO
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_x000D_ Debashis Chatterjee boasts a remarkable career spanning three decades in the technology services industry. Before his tenure at Mindtree, Chatterjee held the position of President for Global Delivery and Digital Systems and Technology at Cognizant, a prominent IT firm listed on NASDAQ with an extensive $8 billion portfolio. During his tenure at Cognizant, Chatterjee played a pivotal role in developing and managing significant business units, notably overseeing the banking and financial services vertical, a substantial $3.5 billion enterprise._x000D_

Corporate Actions

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• LTI Mindtree Limited's Equity Buyback, announced on June 28, 2017, has closed with 4,224,000 shares, representing 2.51% for ₹2,640 million.
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Financial Performance

_x000D_ LTI Mindtree (LTIMindtree) has demonstrated strong financial performance, as indicated by the provided information for the fiscal year 2023._x000D_

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1. Revenue Growth: LTIMindtree achieved significant revenue growth, with revenues reaching ₹331,830 million. This represents a substantial increase of 27.1%
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2. Profitability: Despite strong revenue growth, the company experienced a slight reduction in profitability. The EBITDA margin decreased from 20.1% in FY22 to 18.4% in FY23, while the EBIT margin dropped from 17.8% to 16.2%. The net profit increased by 11.7% from ₹39,500 million for FY22 to ₹44,103 million for FY23. Due to merger-related integration costs, the PAT margin declined from 15.1% in FY22 to 13.3% in FY23.
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3. Return Metrics: The Return on Equity (ROE) decreased from 30.5% in FY22 to 28.6% in FY23, and the Return on Capital Employed (ROCE) also decreased from 37.7% to 34.9%. These metrics suggest that, while still healthy, the company's efficiency in generating returns from equity and capital employed declined slightly.
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4. Earnings Per Share (EPS): LTIMindtree's Basic Earnings Per Share (EPS) increased by 11.5%, rising from ₹133.67 in FY22 to ₹149.07 in FY23. This indicates that the company was able to generate more earnings for its shareholders on a per-share basis.
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5. Cash Flow and Liquidity: LTIMindtree reported healthy operating cash flow conversion at 70.2%. The current ratio improved from 2.9 as of March 31, 2022, to 3.1 as of March 31, 2023, reflecting a stronger financial position and liquidity.
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6. Credit Ratings: The company's strong financial discipline and performance were recognised by credit rating agencies. It received a AAA/Stable/A1+ rating from CRISIL Ratings and an IND AAA/Stable/IND A1+ rating from India Ratings & Research. These ratings indicate a high level of confidence in the company's ability to sustain profitable business performance and manage financial risks effectively.
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