Growing at a fast pace increases our ability to attract new talent: Sanjay Jalona, CEO, L&T Infotech | Interview

Published: October 18, 2019 5:41:08 AM

Their performance has been very well in Q2 FY20. I think, being under the same banner, we both can learn from each other and be complimentary to each other. Our numbers also do not show any competition. We also do not face any pressure because of them and it shows in our numbers.

Sanjay Jalona, CEO, L&T Infotech, L&T, Infotech, LTI, L&T q1, L&T q2, TCV Sanjay Jalona, CEO, L&T Infotech

L&T Infotech (LTI), which announced its Q2 FY20 results on Thursday, posted a positive set of numbers with a net profit of Rs 360.4 crore and a 3.4% sequential revenue growth of Rs 2,570.7 crore from Rs 2,484.9 crore in Q1 FY20. The company also announced its acquisition of PowerupCloud Technologies along with the results and closed the acquisition of Lymbyc in Q2 of FY20. LTI CEO and managing director Sanjay Jalona speaks to FE’s Srinath Srinivasan on the results and the plans for the second half of the fiscal year. Excerpts:

There has been an increase in revenue across major verticals and geographies. What were the factors behind the positive set of numbers?
In Q1 FY20, we had a 0.8% Q-o-Q growth and in Q2 it rose to 2.4%. It was a very happy quarter and we are seeing good momentum. Large deals that we had announced in the past are ramping up well. We got three new large deals totalling to a TCV of around $100 million. We also acquired Lymbyc in the same quarter, which also aided our growth. I think these were the major factors behind.

The attrition rate has remained flat at 18.4% in Q2 from 18.3% in Q1 FY20. How do you manage to retain talent compared to some of the bigger players in the market?
People are not only looking at the salary figures today but also who’s doing the best digital business and who’s growing the fastest. Competition also always looks for the best talent and we can’t afford to lose them. We have always given individuals the opportunity to perform a higher role work. Growing at a fast pace increases our ability to attract new talent and retain them. I think since we are able to achieve this growth, our attrition rate has remained flat and our employee count has gone up to 30,979 during Q2 from 29,347 in Q1 FY20. We also regularly run all kinds of programmes to reskill our employees and keep them up to date to work on latest digital projects.

Apart from acquisitions and investing in employees, are there any other plans of investments for the second half of FY20?
We strongly believe that customers work with us because we are investing in capabilities that will make them competitive in the marketplace. PowerupCloud is our fourth acquisition in this calendar year. This will help our customers to efficiently go from on premise to cloud. Our previous acquisition, Lymbyc, was aimed to enrich our customers with data intelligence. We are always looking on investments to build capabilities in-house, investments to partner and to acquire capabilities in times to come. This has given us proven results and we will continue to be on this journey in the second half of the financial year as well.

How has Mindtree’s inclusion under L&T’s banner affected your performance? Is there an internal competition?
Their performance has been very well in Q2 FY20. I think, being under the same banner, we both can learn from each other and be complimentary to each other. Our numbers also do not show any competition. We also do not face any pressure because of them and it shows in our numbers.

Where was the headwind in Q2? Do you expect macroeconomic factors prevailing in the US and Europe to affect your second half in FY 20?
Apart from our largest customer clamping down some of their budget, which had a minor impact last year as well, we did not lose any business in the first half of FY20. Obviously there is nervousness because of the uncertainty in the west and everybody is watching what IMF is saying about the industry being down. We will focus on offering ideas for revenue generation or using digital technologies to reduce cost for our customers and help them connect with their consumers a little better, which will bring in money for us. The newer deals we signed this years makes us believe we will have a strong growth. Customers are also increasingly adopting digital or what I call as exponential technology to improve their growth, which also works in our favour as digital is a major revenue contributor for us.

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