Thursday, September 16, 2021

L&T Infotech reports 10% fall in Q2 profit

Larsen & Toubro Infotech (LTI) reported a 10 per cent fall in net profit at Rs 360.4 crore for the quarter ended September 30, as wage hikes hurt the bottom line.

The Mumbai-based company’s revenue rose 10.3 per cent to Rs 2,570 crore, helped by some large deal wins during the previous quarter. Margins contracted to 18.1% from 20.5 per cent in the corresponding quarter.

“We won three large deals in this quarter, all of them from new clients, aggregating to net new total contract value of about $100 million. A healthy pipeline, continued large deal momentum and fast-growing Digital services across all verticals make us optimistic about the future,” CEO Sanjay Jalona said.

The clients were from the United States, Europe and the Asia Pacific region, he said.

Spending by the top few clients in the banking and financial sector have been flat for a couple of quarters, but are expected to ramp up from the third quarter, Jalona said.

The percentage contribution of the BFS sector went down to 27.1 per cent from 29.9 per cent in the year-ago quarter.

The company said it bought cloud consulting company, PowerupCloud Technologies, for $15 million. PowerupCloud has capabilities in cloud consulting, migration, cloud native application development and managed services. It has over 180 employees and clocked in revenue of $3.5 million in the previous financial year.

“This acquisition will help LTI strengthen its cloud services capabilities through a combination of right leadership, team, assets and ecosystem connects, which in turn will enable LTI to provide better services to its existing and new clients,” the company said.


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