MUMBAI: L&T Technology Services expects business to revive from telecom and hi-tech customers, but the key to faster growth depends on mitigating delays in closing deals with its clients, the top executive of the company told ET.
“The journey which customers are taking, our investments in new technology plus the nine deal wins (in the quarter) where two of them are over $30 million give me the confidence.Things are looking positive,” said chief executive Keshab Panda speaking to ET.
“Opportunity on hand is sufficient for us in every segment. Delay in decision making could impact the percentage growth whereas with the opportunity there is no issue.”
The Bengaluru-based engineering services provider forecast better performance in the year ahead and for the fiscal year 2021, after reporting flat growth in the third quarter.
The management said that the worst was over in its key ‘telecom and hi-tech’ vertical which impacted performance in the December quarter. Slow decision-making by clients and sluggish revenue growth and degrowth in telecom and hitech vertical revenues contributed to the muted results in the quarter.
The telecom vertical saw a 9.8% fall in revenue on a sequential basis due to client specific issues, according to the company. However, LTTS expects growth ahead due to its deal wins in the quarter.
Analysts said the company’s numbers were within expectations but maintained a cautious stance.