LTI posts 35% profit growth, 29% revenue growth in Q1 at Rs 3.6 bn

LTI announced a large deal with a Global Fortune 100 consumer and pharmaceutical giant with a net-new total contract value win in excess of $50 mn

IT midcap Larsen & Toubro Infotech (LTI) posted profits of Rs 3.6 billion growing of 24.8 per cent sequentially and 35.2 per cent year on year (YoY) for the first quarter ended on June 30.

Revenue grew at Rs 21.55 billion up 29 per cent YoY and 7.7 per cent sequentially.

"We are pleased to report a strong start to the year with 5.1 per cent QoQ revenue growth in constant currency. Our growth has been driven by continued healthy momentum across multiple sectors, with double-digit sequential growth in BFS and High-Tech & Media in Q1," said Sanjay Jalona, Chief Executive Officer & Managing Director, LTI.

The company also announced a large deal with a Global Fortune 100 consumer and pharmaceutical giant with a net-new total contract value win in excess of $50 million.

Digital revenue now forms 34 per cent revenue share with deals coming from existing clients as well as new areas like GDPR implementation said Jalona.

EBITDA  reported was Rs 4.2 billion, up 48 per cent over the year ago quarter. EBITDA margin was 19.4 per cent impacted slightly by visa expenses said the management. Wage hike will be implemented next quarter and did not not impact margins.

At 27 per cent revenue share BFS was the fastest growing vertical with primarily digital and data based projects coming it. 

Except for the two large deals announced last quarter, all deals so far have already started figuring in the revenue numbers said Jalona.

Headcount of 25150 is up by little more than 1000 from previous quarter. " While we're focusing on building a world class sales team recruited from top B-schools in India, our development teams are being recruited across experience levels and geographies," he said.