L&T Infotech Q2 net up 11.3% YoY

L&T Infotech, the IT services arm of Larsen & Toubro group, reported profit of Rs 232.6 crore for the second quarter ended September 30, 2016 up 11.3 per cent on a year-on-year basis. 

The company reported a topline growth of 9 per cent at Rs 1,602 crore for the second quarter on a year-on-year basis, and reported a sequentially grew at 3 per cent. 

In US dollar terms the company reported a constant currency growth of 3.6 per cent, much better from some of its mid-cap peers and the large cap firms. 

“This solid performance is result of our investments in new service lines, partnerships and building a robust sales and marketing engine. We announced the acquisition of AugmentIQ in big data and analytics space last month, which positions us to enable accelerated data monetization for clients across verticals. Our client-centric approach has helped us win critical engagements in five growth areas of – Digital, Analytics, IoT, Cloud Apps and Automation, many of them against significantly larger and global incumbents. We will remain focused on implementing our LTI 2.0 strategy," said Sanjay Jalona, CEO & MD, L&T Infotech.

The second quarter numbers were also driven by digital services, which is now 25 per cent of the company’s total revenue. “Our digital revenues were driven by analytics. In terms of verticals BFS and manufacturing grew growth and top 10 accounts grew 4.7 per cent during the quarter,” he added.

Jalona also reiterated that going ahead the company is confident of doing better than industry growth rate and see little impact of Brexit. “Our GBP exposure is just 2 per cent so we have not seen much impact. However going ahead I think Brexit will create opportunities for the industry and for us,” he added. 

The net margin for the quarter came in at 14.3 per cent down 58 basis points. This was primarily due to wage hikes.