L&T Infotech (LTI) is positive about the growth momentum sustaining over at least the next three years despite the Russia-Ukraine war and soaring inflation, CEO Sanjay Jalona has said.
The confidence stems from the strong growth the company saw in FY22 and a robust demand environment.
“We have closed FY22 (on a strong note), but when I reflect back, at the start, trust me, we didn't expect it to be such a good year; the best year in our listing,” Jalona told mediapersons on April 19 after announcing the company’s FY22 results.
Also read: Mindtree, L&T Infotech working together on projects for 2 years: Mindtree CEO Debashis Chatterjee
LTI reported $2.1 billion in revenue, up 26 percent, for the year ended March 31, 2022, compared to the last fiscal. This is the strongest growth the company has recorded since its listing.
The incremental revenue of $430 million is more than what the company added in FY20 and FY21. The company is confident about registering yet another year of strong growth in FY23.
The company performed well even as the Russia-Ukraine conflict worsened and concerns mounted around inflation, particularly the US, which is one of the largest markets for the company.
Jalona said there were a lot of challenges across the world over such as the Ukraine war, “great resignation”, central banks moving in to raise rates and inflation.
“But when we talk to our customers, when we look at our pipeline, it is more robust,” Jalona said. It was because the coronavirus pandemic created an opportunity for every company in every industry to do overhaul to deal with the new world, which operated differently, he said.
“I'm not one to do crystal gazing, but if I look at and hear the customers in their conversations, I feel this will continue for at least for a three-year period.
“For the next three years at least, I'm more positive about what LTI can do with our customers with regards to the sustainability of growth,” Jalona said.
Also read: What potential merger of Mindtree and L&T Infotech means
On the immediate impact of the crisis, Jalona said Europe grew faster than North America in Q4 FY22 and the company had a robust pipeline all across.
“I can't say there is any geography or vertical that is secluded from all the transformation and digital journey that everyone needs to go to. I think that will continue for the foreseeable future,” he added.
With a bullish outlook, the company is also looking to hire a large number of freshers. It hired 6,200 newcomers in FY22 and will start with a hiring target of 6,000 freshers in FY23.
“As the business grows and as we keep the momentum, we will further increase it as time goes by,” Jalona said.
The company, however, did not comment on the reports of the merger between LTI and Mindtree. While Jalona said the companies were working together on large deals to leverage certain capabilities since Mindtree acquisition, he offered no comment on the merger talk.
For a long time, there has long been talk of a merger of Mindtree and L&T Infotech (LTI), both tech firms owned by engineering and construction major Larsen & Toubro (L&T).
Bloomberg reported on April 18 that the boards of both firms would meet next week to consider a potential merger, a move that will catapult the combined entity to the top league of IT firms. The position, according to industry experts, will help it tap into larger market opportunities, drive down cost and minimise risk.
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