L&T Infotech says bullish for next quarter, and so making investments and hiring

Larsen & Toubro Infotech has launched a programme to hire 100 business relationship managers in calendar year 2022. Speaking with CNBC-TV18, Sudhir Chaturvedi, president of sales and executive board member of Larsen & Toubro Infotech (LTI), on Tuesday said the company is not only working on the same but making investments in multiple areas.

“We are slightly ahead of schedule there (regarding hirings). So, we are confident that we will have the right size of sales and marketing team, but more importantly, built up a very strong support ecosystem for the sales and marketing team to be able to be successful in the market,” Chaturvedi said.

He added that the company was making investments that would support sales, for example, our practice unit investments, which are specific technology, expertise related investments.

Chaturvedi said that the company has a clear ambition of growing in FY23 and FY24. “When we look at the LTI presence across the world, we actually mirror more tier-one in our presence; the sectors that we work in, the service lines that we operate in as well as the geographies that we work in and the kind of clients we have, we have 77 Fortune 500 clients. So, our footprint is quite resilient to various macroeconomic factors,” he said.

He said that the company’s size enables it to do things at speed and agility, but the presence is such that it mirrors the tier-one.

“We expect that that will stand us in good stead even in 2024 where perhaps we will start to see some slowdown in spending, but the recent US job numbers are very promising, even the oil prices in the US, the gas prices at the gas stations have come down,” Chaturvedi said, hoping the inflationary cycle would come under control sooner rather than later.

The multinational tech consulting and digital solutions subsidiary of Larsen & Toubro reported a 27.64 percent year-on-year increase in net profit at Rs 634.4 crore for the April-June quarter on July 14 . The consolidated income from operations stood at Rs 4,523 crore in the first quarter, up 30.62 percent as against Rs 3,462.5 crore in the same period of the previous financial year.

On June quarter earnings, Chaturvedi said he believed the company did “very well” from an operating leverage perspective.

“We make sure that our combination of utilisation and the business mix has been such that margins have continued to be between the 14-15 percent band for profit after tax. Our clear intention is to stay within this band,” he said.

He said that the company was bullish about the July-September quarter. “First, we have had good growth, momentum built up through volume build-up. Second, not only are our top 20 accounts growing, but our top 50 accounts and the accounts beyond those are also growing.”

Chaturvedi listed eight large deals in the past two quarters as the third factor that would support growth in the September quarter.

“We are also seeing a little bit of growth coming through people, some of our clients looking to accelerate some of their initiatives, especially focusing on finishing projects in calendar year 22. The European market grew 31 percent for us year-on-year, and that’s continuing to be resilient despite the situation.”

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First Published: Jul 26, 2022, 05:42 PM IST

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