LTI bounced back with strong sequential broad-based revenue growth, strong deal wins and revival in growth from large clients. The revenue growth of 13% in FY2020E is impressive against the backdrop of large account challenges and highlights the resilience of the model.

On YoY comparison, LTI reported revenue growth of 14.2% in c/c. Revenue growth was broad-based across verticals and led by manufacturing (+15.4% QoQ), BFS (+11.1% QoQ), and hi-tech (+8.9% QoQ). EBIT at Rs4.6 bn (+14.4% QoQ, -3.5% YoY) was 5.8% . Net profit was 2.8% ahead and was lower than outperformance at EBIT level due to lower-than-expected forex gains.

Good execution and strong wins help accelerate growth;Large deal wins were once again strong with a combined TCV of US$78 mn.

LTI has won 21 large deals with a combined TCV of US$978+ mn in the past 14 quarters (1QFY17-3QFY20).

Management indicated that strong ramp-up of deal wins won in previous quarter’s will likely result in strong growth in 4QFY20

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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