L&T Infotech confident of strong growth in FY19

By: |
New Delhi | August 30, 2018 2:00 AM

LTI grew 9.3% and 16.7% in FY17 and FY18. The company grew 23.4% in dollar terms in Q1FY19.

Four factors have helped growth rates. (Reuters)

We hosted Sanjay Jalona, CEO and Nitin Mohta, head-investor relations, for investor meetings recently. The management is confident of strong growth in FY19 and being in the leaders’ quadrant on growth in the medium term.

A rich client base, focus (verticals, accounts, and competencies), strong digital capabilities and lesser drags will continue to power strong growth. Such growth shall result in margin expansion; instead the company will reinvest gains to create a longer-term sustainable growth theme.
Healthy growth deserves premium multiples; we retain our positive view.

LTI grew 9.3% and 16.7% in FY17 and FY18. The company grew 23.4% in dollar terms in Q1FY19. Four factors have helped growth rates: LTI has one in every five accounts, or 59 clients, in the F-500 category. These accounts are large and scalable. Changes made on the account facing teams and multiple initiatives detailed later have helped mine large accounts. The company has barely scratched the surface in making the most of existing client relationships.

Focus, on account hunting, mining large accounts and seeding digital services in key accounts led to a productive use of resources and firing up the growth engine. Account hunting is carried out through top focus account list, a target list comprising of must-win logos in focus verticals. LTI has opened up plenty of large accounts through this target focus list. This focus helps in getting the right profile of customers on board and avoids unproductive investments. Minecraft account mining initiative was created to replicate the success of mining top 20 accounts to a larger base of top 50 accounts. ADEA (Analytics and Digital in Every Account) was created to drive broader acceptance of digital offerings, an area where the company has achieved a fair bit of success.

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