Whetting the explosive digital transformation appetite

Mindtree and L&T Infotech merged after this survey to become LTIMindtree. This entity should easily be among the Top 5 IT in the next survey

It’s a global technology consulting and digital solutions company, and Larsen & Toubro Infotech is marching well on capturing the explosive digital transformation appetite, triggered by the pandemic, all across the world.

In its full year FY22 results revenue reached $2,102.5 million registering a growth of 25.9 per cent YoY (this was revenue in terms of INR 156,687 million)

The company seemed happy to cross the $2 billion revenue milestone – pointed out as its strongest since listing. The growth was attributed to a broad-based momentum across verticals, service lines, client buckets and geographies. The year was also counted as one with the highest new client openings and net headcount additions.

In its results for Q2 FY23, revenue stood at $601.0 million; marking a growth of 3.6 per cent QoQ and 18.1 per cent YoY. In terms of Indian rupees, revenue was at INR 48,367 million; showing a growth of 6.9 per cent QoQ and 28.4 per cent YoY. In its Q1 FY23 results we saw that revenue touched $580.2 million – this, in terms of Indian Rupees, was a revenue of INR 45,228 million.

Company’s senior brass was happy that it added 4 Global Fortune 55 logos in Q1, thus, improving its total list of Global Fortune 500 customers to 77. It also announced 4 large deal wins during the quarter with net new TCV of $ 79 million. It stayed assured of a healthy pipeline and a large deal momentum – backed by sustained net headcount addition that would help in delivering strong growth in FY23.

The LTI Mindtree merger would definitely be a new cylinder in the engine room here. This could lead to the country’s next large-scale IT Services player. It can mean a high significance in current times when the industry is seeing a pattern of prominence of large deals, preference for end-to-end offerings – that mean a big plus for at-scale players. This is a good time for combining forces and tapping significant scale benefits – specially as both the companies also bring complementary strengths resulting in a stronger portfolio of offerings across verticals.

New Initiatives & Investment

The company has been underlining its focus on digital process areas with many niche collaborations too. Like it joined hands with Saviynt, a provider of enterprise cloud identity solutions to strengthen joint capabilities for improved identity management and security threat protection during digital transformation. Recently it also extended its collaboration with Microsoft to focus on developing high-value cloud solutions for enterprises. Same happened for expanding its global partnership with Google Cloud. It also partnered with Securonix and Snowflake to bolster cybersecurity areas.

Apart from forging these integrated strengths, the company spread its footprint of innovation across many regions and areas. This was done through launches like

•             A new engagement centre in Hartford, CT

•             A ServiceNow experience center and innovation lab in Hartford, CT

•             An Innovation Studio for SAP Business Technology Platform

•             A Satellite centre in Kolkata

•             A partnership with IIT Madras for 5G areas

Key segments - Industry & Technology Focus Areas

As per the brand valuation and strategy consultancy firm, Brand Finance, LTI’s brand value reached $1.1 Billion with an exceptional growth of 83 per cent in LTI’s brand value since 2020. Experts have appreciated its vantage point as a Tier 1 competitor in the IT Services space and its ‘Let’s Solve’ brand proposition.

Key Wins

•             A leading health care system based in North America

•             An international organization involved with global conflict resolution and humanitarian assistance

•             A Global Fortune 500 multinational information technology company

•             A manufacturer of vertical transportation systems

•             A leading property and casualty insurer

•             A leading provider and manufacturer of heating and cooling solutions and equipment

•             A leading petrochemical company for a managed services deal

•             A world-wide leader in beauty and cosmetics

•             A large financial institution in the Middle East

•             Also certified as a water-positive company based on a third-party audit

Sanjay Jalona

CEO, Larsen & Toubro Infotech (Till Jun 22)

Debashis Chatterjee

Currently CEO of LTI Mindtree

By Pratima H

pratimah@cybermedia.co.in