As part of the tie-up, LTI and IBM plan to establish an innovation centre in Bengaluru in 2021. The centre will offer a comprehensive suite of IBM's cloud, automation, integration, data & artificial intelligence solutions to foster innovation
MUMBAI: Shares of Larsen & Toubro Infotech (LTI) rose 4.7% on Tuesday to hit a fresh 52-week high of ₹4443.75 on the BSE after the company said it is expanding its multi-year, global alliance with IBM to help businesses transform their operations through hybrid cloud adoption.
L&T Infotech will help clients migrate and modernise core business applications leveraging IBM Cloud offerings.
As part of the relationship, LTI and IBM plan to establish an innovation centre in Bengaluru in 2021. The centre will offer a comprehensive suite of IBM's cloud, automation, integration, data & artificial intelligence solutions to foster innovation. IBM will provide training to LTI employees to facilitate co-creation workshops and solution development for their clients. The announcement was made during market hours today.
Analysts at Motilal Oswal in a note said LTI they continue to deem among the best-in-class IT services companies on execution and management quality.
"LTI is expected to deliver strong sequential growth of 4.5% QoQ in dollar terms in a seasonally weak quarter, led by a ramp-up in deal wins in the previous quarter, after a strong EBIT margin performance in 2Q up 370bps YoY, expect stable margin performance in 3Q too."
"World's leading organisations trust LTI as the partner of choice in enabling their digital transformation journeys and modernizing their existing technology landscape. We are expanding our resolute relationship with IBM to allow customers to seamlessly embark on hybrid cloud environment with best-in-class automation and Integration." said Sudhir Chaturvedi, president-sales, and executive board member.
LTI reported a 9.7% year-on-year rise in its consolidated net profit for the September quarter ₹456.80 crore while revenue rose 1.7% to ₹2,998.40 crore.