According to Venu Lambu, Managing Director & Chief Executive Officer of LTM, the acquisition aligns with the company’s long-term strategy and is more than a simple purchase. “This aligns well with our goal of doubling revenue over the next five years,” said Lambu, emphasizing that the move will contribute to a more balanced portfolio in various markets and service offerings.
Lambu noted that the acquisition introduces a business generating over $500 million in revenue from Europe and Australia, regions identified as key growth markets. Management anticipates that the deal will enhance scale, fortify customer relations, and unveil opportunities in offshore delivery and substantial transformation projects.
LTM foresees this acquisition significantly boosting its international footprint. Europe is anticipated to evolve into a more than $1 billion revenue market for the firm, while Australia could approach nearly $150 million, thereby enhancing its competitiveness for larger enterprise contracts. A key area of focus moving forward will be AI-driven transformations and Global Capability Centre (GCC) prospects, particularly as multinational firms intensify their investments in operations based in India. LTM aims to assist clients with both enterprise IT needs and extensive engineering and consulting endeavors.
The company has also indicated that the acquisition is not expected to impact profitability in the short term. Despite a recent decline in revenue for the acquired entity, management believes there is significant growth potential under LTM’s delivery model and global expertise.
“We are not forecasting any substantial impact on margins,” Lambu remarked, indicating that the deal is expected to initially be EPS-neutral while contributing long-term value over time.
The stock ended today’s trading session on the NSE at ₹4,008.20, reflecting a decline of over 10% from the previous year.
LTM’s current market capitalization stands at ₹1,18,921.42 crore.
For the complete interview, view the accompanying video
