LTI Q1 revenue up 7.7% sequentially, profit goes up nearly 25%

LTI, earlier known as Larsen & Toubro Infotech, posted a sequential rise of  7.7 percent in revenue in the first quarter, with double-digit growth in banking and financial services and high-tech and media businesses.

LTI reported revenue of Rs 2155.7 crore, and net income of Rs 361.2 crore, a growth of 24.8 percent from the previous quarter.

The company reported a 5.1 percent sequential revenue growth in constant

currency terms.

Our growth has been driven by continued healthy momentum across multiple sectors, with double-digit sequential growth in BFS and High-Tech & Media in Q1. We are also happy to announce a large deal with a Global Fortune 100 consumer and pharmaceutical giant with a net-new total contract value win in excess of  $50 million," said Sanjay Jalona, Chief Executive at LTI.

Revenue in the BFS business rose 13.4 percent sequentially in constant currency, while revenue in the high tech and media vertical grew 10.4 percent in constant currency.

Digital revenue accounted for 34 percent of revenue during the quarter.

In a conversation with Moneycontrol, Jalona said two deals LTI signed in the second quarter of last year were ramping up.

EBIT margin during the June ended quarter was 17.7 percent, a rise from 15.9 percent in the fourth quarter.

Revenue in the analytics, AI & cognitive service line rose 0.1 percent in the quarter ended June 30, compared with 4 percent growth in the previous quarter as work from a large contract in India shifted to support based work, Jalona said. The service line posted a rise of 1 percent in constant currency terms.

Among the geographies it operates in, LTI's revenue in North america grew 4.5 percent sequentially, Europe fell 0.7 percent, rest of the world rose 26.9 percent and India business fell 16.4 percent due to currency fluctuation impact.

"We continue to see India as a growth opportunity," Jalona said.

Total headcount during the quarter rose above 25,000 during the quarter while LTI added 1,494 people in the June-ended quarter.

Jalona said that while the nature of deals had changed, the pipeline was there and that the company continues to be optimistic about the future.