IT major L&T Infotech is expecting financial year 2019 to be better than the last fiscal for the industry. “From LTI’s perspective, we will see continued growth," said Sanjay Jalona, CEO of the company.
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Despite the IT services industry being scrutinised for a possible downturn, Jalona has maintained a positive outlook for the industry.
For FY17, the company saw a revenue growth of 10 percent, while FY18 revenues grew by 17 percent and Jalona is confident that the pace of growth will only continue to increase. "We still have a few quarters to go but we are very confident that the growth will continue,” he said.
While most IT firms saw a strain on the banking and financial vertical with increased cost pressure in North America, LTI has been seeing consistent growth.
"We have focused on excelling in fewer areas like capital investment banks, digital banking, finance risk and compliance and that has helped us scale revenues in this niche segments despite competition from companies who's BFSI business may be bigger than our overall revenues," Jalona said.
According to Jalona, there is a lot of positivity in the industry in all verticals. "The companies are performing a lot better, profitable growth is happening so they are definitely finding newer ways to connect with the customer," he said.
The digital business of the company has reached 34 percent of the company's revenues. Jalona said that the bracket will only grow as clients look at cost-effectiveness and transformation at the same time.
The company will focus on acquiring other smaller companies, Jalona added.
"We want to invest it all back into the business and grow faster," he said. "Our whole target has been keeping the margin where they are, we are a growth company, people should look at it as a growth company, we want to push everything onto growth whether it is acquisition, whether it is building capabilities, all that hiring right sets of people, that is more important to me.”
According to the latest figures of the company, the margins stand at 17.7 percent. The company is looking to retain the current margin level and use the additional margins, if any, for investing it back into the business.
Despite the US work visa debate, Jalona said that the company has increased its employment by hiring locals across geographies.
The high visa costs in the US have been absorbed, Jalona said, adding that the tax reforms in the US have given confidence to their for increasing their discretionary spending.