Latest News | LTI's Q1 Net Jumps 17 Pc to Rs 401 Cr, Hints at Challenging Times Ahead

Mumbai, Jul 15 (PTI) Larsen & Toubro's Infotech arm LTI on Wednesday posted a 17.06 per cent growth in its June quarter net profit at Rs 416.4 crore but acknowledged that it is a challenging time for the industry at present.

When compared to the previous quarter, the profit declined 2.59 per cent as conditions became tough.

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The pre-tax profit margin went up both from a sequential and year and year perspective to 20.1 per cent, but the company's managing director and chief executive Sanjay Jalona told PTI that it will be affected going ahead.

He said the company will try to maintain the net profit margin in the 14-15 per cent level guided to earlier, as against 14.1 per cent achieved in the first quarter.

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Its overall revenues rose to Rs 3,015 crore from the year-ago period's Rs 2,586 crore, but were marginally down as compared to the preceding March quarter's Rs 3,082 crore.

"These are extraordinary times and the impact on businesses is unprecedented," Jalona said, adding that the company was able to duck some bit of the troubles as its exposure to the worst affected sectors like retail, travel and hospitality is negligible or not there at all.

However, sectors like manufacturing where it has a presence did take a hit, Jalona said, specifying that some discretionary spends have been delayed by companies.

He added that the company has been busy chasing new business and deals are also coming, and pointed out to a USD 20 million deal with a UK-based financial services player signed during the quarter.

The company, which has delayed salary hikes for its staff, saw a marginal increase in the total workforce to 31,477 people and Jalona said it will be going ahead with the fresher hiring and be selective on laterals.

He said the regulatory moves initiated by the US were not surprising as it was all building up over time, and hinted that it may lead to more offshoring of work. Jalona also added that the company will also continue to hire locally in the markets it operates in.

LTI shares dropped 1.89 per cent to close at Rs 2,195.50 on BSE as against marginal gains on the benchmark index Sensex .

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)