LTI reports 16.6% jump in Q2FY21 revenue YoY, net profit up 26.7%

LTI reports 16.6% jump in Q2FY21 revenue YoY, net profit up 26.7%
Photo Credit: 123RF.com
21 Oct, 2020

Mid-tier information technology (IT) services firm Larsen and Toubro Infotech (LTI) has reported a 16.6% year-on-year (YoY) increase in revenue to Rs 2,998.4 crore for the quarter ended September 2020, with a sequential increase of 1.7%. 

The subsidiary of engineering conglomerate Larsen and Toubro also reported a 26.7% YoY increase in its net profit to Rs 456.8 crore; a sequential increase of 9.7%.

The firm also announced a large deal with net new TCV (total contract value) in excess of $40 million in analytics.

“Our large deal pipeline remains strong and we see increased traction in the digital, cloud and analytics space,” Sanjay Jalona, chief executive officer & managing director of LTI said in a statement. 

“The pandemic has made it apparent that organizations need to reimagine their target operating models embracing digital transformations to remain relevant in the marketplace. This presents tremendous opportunities for companies like us with comprehensive digital transformation capabilities,” he added. 

Like other IT firms, the strong numbers for LTI have also been on the back of deal wins. The company has won 11 deals for the quarter ended September 2020 including the selection by a key government ministry for a large data and analytics led transformation deal. As part of the deal, applications and operations will be transformed and developed for collection and dissemination of data as information, case management and fraud management using artificial intelligence.

The company has declared an interim dividend of Rs 15 per equity share (face value of Re 1).

The L & T group runs two more IT services firms -- L & T Technology Services and Mindtree.

Last week, Mindtree reported a jump of 88% in its quarterly profit on the back of broad-based revenue recovery and improved EBITDA (earnings before interest, taxes, depreciation and amortization).