Banking and financial services has been our real success story: Sanjay Jalona from LTI

Mumbai: Banking and financial services, which grew 38% year-on-year (YoY) in the third quarter for Larsen and Toubro Infotech (LTI), was a key driver of revenue expansion, a senior executive at the society.

The company has gained not only global financial customers seeking scanning solutions, but also Indian banks and customers who have turned to LTI’s analytics offerings, said Sanjay Jalona, ​​Managing Director of LTI .

On Wednesday, LTI reported its best quarterly performance yet with revenue growing 31.2% year-on-year and 9.8% sequentially to Rs 4,137 crore for the third quarter ended December 2021. net income increased by 18% year-on-year and 11% from the previous quarter to reach 612 rupees. crore.

Sequential constant currency revenue growth of 9.2% is the highest the company has seen since its IPO in 2016.

“BFSI accounts for almost half of our turnover and this has been our real success around the world. Our capabilities in core banking offerings with Temenos have resonated well with customers,” Jalona said.

The BFS segment grew 38.4% in the quarter compared to the same quarter last year, although insurance grew 14.3%. He added that the company has also developed a “deeply rooted” BFSI engagement in India with a number of clients in that space. The company works with private sector banks and credit bureaus for fraud monitoring and compliance solutions.

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“Globally, we have seen tremendous growth in compliance and data analytics for retail banking, investment banking and mortgage-related products. Customers also need more digital ways to interact with customers and are investing in this space,” he said.

In addition to BFSI, the company has also seen demand growth in areas such as cybersecurity and ESG. Jalona added that the industry is seeing a wave of “big restructuring” with companies moving to the new normal, leading to increased spending on IT solutions. The pace of automation and digitization is accelerating rapidly. He added that prices have risen in “pockets”.

He added that the company has seen widespread growth across all customer segments and categories. “We added a client to the $50 million category. All customer segments grew by more than 25%. We added 27 new logos including a Fortune 500 client. This is the most logos we have added year-to-date since our listing (for a quarter),” he added.

The company also benefited from an increase in the share of offshore effort in the quarter. The company reported a drop in utilization – excluding interns and a sharp increase in attrition.

Attrition, as with the industry as a whole, remained high at 22.5% compared to 19.6% last quarter.

A report by ICICI Securities noted that LTI’s growth on a solid basis from the third quarter of FY21 showed strong demand instead of a recovery from weak numbers in previous quarters. “The company’s strong growth prospects and consistency in execution should lead to industry-leading revenue growth prospects. We expect LTI’s revenue CAGR of 25% for fiscal year 22-24E to be the highest in the industry,” the report said.

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