L&T Infotech's fourth-quarter earnings were largely in-line with estimates but growth slowed due to issues with a top client. Sanjay Jalona, managing director and CEO, said the company's growth slowed in Q4 due to internal restructuring and budget cuts at its largest client. "But still having a resilience in the company with various verticals putting in 2 percent, still having a growth of 2 percent has been quite good,” he added.
Jalona said that overall we have had a good growth of around 21 percent in constant currency. He further said that we do expect the same kind of momentum to continue for one more quarter and Q2 onwards we expect things to improve even in this client.
Talking about FY20 growth, he said, “We do not give revenue guidance for the year but like last 2 years I will go on a limb and say we want to be in the leaders’ quadrant of growth, if not the leader in terms of growth.”
“We have done 3 years consecutively of double-digit growth rates and our aspirations and ambitions are not going down and there is a resilience in the entire company to continue to be in the top quartile on growth,” he further added.
On acquisitions, Jalona said, “Acquisitions are out of the 2 percentage; close to a percentage point has been contributed by the 2 acquisitions put together.”
According to him, margin drop due to a decline in utilization and adverse currency. Jalona further said that we expect the net income margin to be 15 percent in FY20.