LTI posts 18 pc jump in net profit to Rs 621.5 cr during Dec quarter

LTI, the infotech arm of EPC major Larsen & Toubro, on Wednesday reported an 18 per cent growth in its net profit to Rs 612.5 crore for the December 2021 quarter, on higher revenues.

The city-based company's revenue from operations increased 31.2 per cent to Rs 4,137 crore, and was 9.8 per cent higher than the preceding September 2020 quarter.

Indian IT services companies have been reporting a higher pick-up in business during the pandemic, as businesses shift to rely higher on digital interventions to continue.

Its Managing Director and Chief Executive Officer Sanjay Jalona said clients continue to be focused on higher digitisation in the new year also and exuded confidence about the company continuing on the growth trajectory.

He, however, said inflation in the US, supply chain challenges like the ones on semiconductors faced by the automotive industry and the Omicron variant's setbacks are the things that need to be watched in the new year.

On the profitability front, it reported a dip in operating profit margin at 17.9 per cent as against 20.6 per cent in the year-ago period, which was attributed by Jalona to two rounds of pay hikes to the staff during the year.

Jalona said the company aspires to keep the net income margin, which widened to 14.8 per cent, between 14-15 per cent going forward.

It also hired over 1,200 people on a net basis during the quarter to take its overall employee strength to 44,200, and will continue hiring as the business grows, he said.

He added that the attrition, which shot up to 22.5 per cent as demand for talent soared, will also come down.

Jalona said the challenges on the talent front are being experienced across the industry and will continue for up to a year more, as the pressure to capture business growth mounts.

The company booked 66 per cent of its revenue from North America, making it the largest geography; while on the verticals, the banking and financial services category was the highest with a 32.8 per cent contribution.

It reported a huge 45.1 per cent growth in domestic revenue and the country now contributes about 10 per cent to the overall topline (revenue).

The company's shares on Wednesday fell 2.60 per cent to close at Rs 6,692.40 apiece on the BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)