Total Contract Value (TCV) of the two deals, manufacturing deal and insurance deal, is upward of $100 million, says Sanjay Jalona, CEO & managing director, L&T Infotech. During an interview with Swati Khandelwal, Jalona said the Indian government has launched important programs as part of the digital India measures and they want to associate with certain programs.
Edited excerpts:
By when the two major deals signed in Q4 will have an impact on your business. How many new deals can be signed in this fiscal?
Two large deals have been announced and as our tradition goes, we just talk about the net new Total Contract Value (TCV) but not about the mess and the renewals. The net new TCV of the two deals is upward of $100 million across the year and there is a lot of transformation that these deals are there. One deal is related to manufacturing in the industrial sector while the second is associated with the insurance sector. Manufacturing deal is global in nature, but both have a special focus on US geography. As far as the future goes, we are excited about the whole pipeline and opportunities across the sector.
The results suggest that there is a softening in the top 5 client contribution. Is there any problem with renewing from the clients end?
No, there is no problem linked to renewal. But, it was the last quarter when we informed that restructuring work is on at our largest banking customer and there is also a budget cut at their end. So, we informed that we are aware of the budget cuts, which may lead to muted growth. But, despite those cuts, we were able to show a 2% growth which shows the resilience of the company.
We have seen good traction in terms of revenue contribution from India. What are the reasons for the same and what do you expect from it going forward?
The Indian government has launched some seriously important programs as part of digital India and we want to associate with programs that are more ERP centric and are into data analytics area. We are very selective about the programs where we bid but our focus revolves around ERP and data.
What is your margin guidance in terms of dollar revenue and margin guidance for FY20?
We have always said that net income will stand around the narrow band of 15%.
