L&T Infotech net up quarterly, yearly

Last Updated: Sat, May 04, 2019 18:20 hrs
A sign of L&T is placed on a road divider in Mumbai

Bengaluru: Infrastructure behemoth L&T's IT services arm Larson & Toubro Infotech (LTI) on Friday reported a 31 per cent consolidated quarterly and 36 per cent yearly net profit in the 2018-19 fiscal.

"Net profit for the fourth quarter (Q4) of fiscal 2018-19 grew 31 per cent annually to Rs 379 crore from Rs 289 crore in the same period a year ago and flat (0.9 per cent) sequentially from Rs 376 crore a quarter ago," said the company in a statement here.

Though headquartered in Mumbai along with its parent firm (L&T), LTI has its largest software development facility in this tech hub.

Consolidated revenue for the quarter (Q4) under review grew 24 per cent annually to Rs 2,486 crore from Rs 2,001 crore in the same period a year ago and flat (0.5 per cent) sequentially from Rs 2,473 crore a quarter ago.

For the fiscal year 2018-19, consolidated net profit increased 36 per cent annually to Rs 1,516 crore from Rs 1,112 crore in the fiscal 2017-18.

Consolidated revenue grew 29 per cent annually to Rs 9,446 crore for the fiscal under review (2018-19) from Rs 7,307 crore in the previous fiscal (2017-18).

The company's board, which met in Mumbai late Thursday, declared a final dividend of Rs 15.5 or 1,550 per cent per share of Re 1 face value.

"With Rs 12.5 (1,250 per cent) per share interim dividend and Rs 15.5 (1,550 per cent) per share final dividend, the total dividend is Rs 28 per share or 2,800 per cent for the fiscal to the shareholders," added the statement.

"We delivered a strong revenue growth in a changing industry environment. Our focus on amplifying business outcomes for clients is paying off and enabling us to win consistently," LTI chief executive Sanjay Jalona said in a statement.

The company won two large deals with a combined total contract value of USD 100 million in the fourth quarter.

"We are focused on building differentiated capabilities and helping our clients in their digital transformation," said Jalona.

The software major acquired for an unspecified amount Nielsen+Partner, an independent Temenos Wealthsuite specialist, at Hamburg in Germany.

Syncordis, a subsidiary of L&T, became a global services partner with Temenos.

To strengthen and scale up its operations, L&T on March 26 offered to buy 5.13 crore equity shares or 31 per cent of city-based IT major Mindtree's equity stake for Rs 5,030 crore.

The offer opens on May 14 and closes on May 27.

L&T bought 20.4 per cent shares in Mindtree for Rs 3,300 crore at Rs 980 per share from Coffee Day Enterprise owner V G Siddhartha on March 18 and plans to acquire an additional 15 per cent in the secondary market through the stock exchanges.

With the open offer, L&T hopes to have 66 per cent of the Mindtree equity stake by May and synergise it with LTI.

With 300 global clients and operations in 30 countries the world over, the 22-year-old LTI had 27,000 techies at the end of fiscal 2018-19.

The company's blue-chip scrip of Re 1 face value, ended at Rs 1,677.80, losing Rs 43.75 per share when Friday trading closed on the BSE as against Thursday's closing rate of Rs 1,721.55 and opening price of Rs 1,713.95.