LTI reports 18% growth in net profit

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LTI reports 18% growth in net profit

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

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

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

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

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

The operating profit margin fell to 17.9 per cent as opposed to 20.6 per cent in the year-ago period, which was attributed by Jalona to two rounds of pay hikes to staff during the year.

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

He said that over 1,200 people were hired on a net basis during the quarter to increase its employee strength to 44,200, and it will continue to hire as the business grows.

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 because of the pressure to capture business growth.

The North America portion of the company's revenue was 66 per cent, making it the largest geography, while the banking and financial services category was the highest, with a 32.8 per cent contribution.

The country now contributes about 10 per cent to the topline revenue, and the country's shares fell 2.60 per cent to close at Rs 6,692, a huge 45.1 per cent growth in domestic revenue. The BSE has 40 apiece.