Mumbai-based IT company Larsen & Toubro Infotech (LTI) posted disappointing numbers following pressure on some of their top clients. The company reported a revenue of Rs 2,484.9 crore, growth was flat sequentially and 15.3 per cent over the year.
Net profit dipped 1.5 per cent YoY and 6.1 per cent sequentially to Rs 355.7 crore. Dollar revenue stood at $356.5 million at 12.9 per cent constant currency growth over the year. The company missed street estimates.
“We delivered 12.9 per cent YoY revenue growth in constant currency driven by Digital Services that now make up 39 per cent of our revenues. We also won a large deal by opening a new client logo in Insurance vertical with net-new TCV of S$44m,” said Sanjay Jalona, Chief Executive Officer & Managing Director, LTI.
EBITDA margin dropped from 19.2 per cent to 18.4 per cent during the quarter. The company witnessed sequential dip in revenue across geographies except North America. Revenue from top 10 clients dipped 3.5 per cent over the quarter while the top 5 clients witnessed a 4.7 per cent YoY dip in revenue generated.
Attrition rate increased to 18.3 per cent while headcount increased by 1178 to 29,347 during the quarter.
LTI’s parent company L&T recently led a takeover of another IT midcap Mindtree with 60 per cent stake which also posted disappointing numbers in Q1. The group management has repeatedly assured shareholders that LTI and Mindtree would be kept as distinct business.
After L&T took over the controlling stake in Mindtree, the IT services firm on Wednesday said AM Naik- L&T's Group Chairman - had been appointed as the non-executive chairman of the company. Naik's appointment is significant in many ways as the L&T boss was seen as the key person driving the takeover attempt from the very beginning.