During the year, your Company crossed several milestones in its ongoing journey of transformation. As it celebrates the major landmark of its 20th anniversary, it unfurled a new visual identity and also completed its maiden year as a listed Company. I am happy to share my thoughts with you as your Company scales up to the next level, and addresses a rapidly changing global environment.
The world is entering an era of fundamental changes. The way we live and do business is opening up new opportunities for digital solutions and service providers. Socio-political developments in different parts of the world, meanwhile, are increasingly impinging on international business, introducing an additional dimension to the conventional interplay of market forces. You would be happy to know that your Company’s clear-sighted view of future demand, its focus on exponential technologies and its commitment to client-centricity should enable it to successfully face up to these emerging challenges.
LTI is at the forefront of architecting the digital strategy for the entire Larsen & Toubro Group. This is among the largest and most ambitious digital initiatives in the country, unequalled for width, depth and sophistication. In tandem with other companies in the L&T Group, it will extend digital levers on profitability and growth deep into the organization, re-casting processes and realizing superior outcomes. The frontline experience gained in implementing a digital dimension to the multiple businesses of the Group should add greater traction to your Company’s offerings in the digital space, across the globe.
LTI’s investments in new service lines, partnerships and building a strong service and marketing engine are beginning to yield positive results across all performance parameters. Revenues are up by 11.2% year-on-year, while net income rose by 16.1% year-on-year. Margin expansion was on the back of a surge in digital revenue which now constitutes 26% of total revenue.
Accolades received by your Company include being rated by the Everest Group among the top 5 service providers for ‘Best Overall Experience’ by enterprise clients and being named as one of the Breakthrough 15 Sourcing Standouts in the EMEA and Americas in the Global ISG Index for 1Q17.
Complacency inhibits change and I am sure that your Company’s management will continue to look for ways to push the bar even higher, and rev up an innovative, inventive mindset. Since external transformation can only succeed in the long term if it is prefaced by internal transformation, LTI has embraced several company-wide change initiatives. A recent internal collaboration program engaged more than 20,000 employees across 27 countries, bringing them on the same platform to share experiences, driving agility and honing skills at every level in the organization.
I am confident that under its outstanding leadership team, LTI will provide positive business outcomes for our clients, energize the IT vision of the group, and build an organization that is primed for the future.