PremiumMumbai: Mumbai: Mumbai-based Larsen & Toubro Infotech (LTI) on Wednesday reported a 4.6% quarter-on-quarter rise in its consolidated profit to ₹376.7 crore for the quarter ended December. During the September quarter, the company had reported a net profit of ₹360.4 crore. On a year-on-year basis, Q3 net profit grew 0.3%.
Revenue from operations increased 9.4% sequentially to ₹2811 crore in the December quarter. On a year-on-year basis, operational revenue increased 13.7% from ₹2473 crore last year.
The numbers were above Street estimates of 1.2% sequential net profit growth and 5.3% revenue growth. This has been the best organic growth for the company since its listing in 2016.
“Our outstanding sequential growth of 8.4% (in dollar terms) in Q3 is a result of on-track ramp up of large engagements we announced earlier. We are extremely pleased with the superior and broad-based performance across verticals and service offerings, which underscores the resilience of our diversified portfolio," said Sanjay Jalona, CEO and managing director.
Manufacturing has been the fastest growing vertical for the company during the quarter, recording 15.7% sequential growth in revenue. North America (70%) continued to comprise a lion’s share in the revenue stream.
The company had reported multiple large deals in the first half of the fiscal, up to $144 million worth of net new total contract value (TCV), which helped the firm report strong numbers in a traditionally weak quarter, the management noted. Even banking and financial services, which dragged for a few quarters, had picked up during the quarter. The company reported two new large deals in manufacturing and other verticals.
“We continue to win large deals across regions and have won two such engagements in Q3 with cumulative net-new TCV of more than $75 million," added Jalona.
The management said it is cooperating with the US Department of Homeland Security (DHS) in their investigation over discrepancies in US visa applications. Recently, analysts had noted that LTI is scaling up investments in developing physical infrastructure (a self-contained campus), talent addition and industry-specific solutions but that will not impact its defined margin band.
“We have largely operated our facilities on lease model and we felt that it is high time that we had our own campus. So we are redeveloping an old campus in Mahape (Navi Mumbai) as an SEZ over the next 30 months to cater to our growth requirement," said Ashok Kumar Sonthali, CFO, LTI.
The campus will house up to 8,000 employees. LTI reported a headcount of 31,419 at 17.7 % attrition rate.
