• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Shamik Paul

Bangalore, Nov. 14 L&T Infotech, the IT arm of construction major Larsen and Toubro Ltd, expects a significant decline in growth rate for the current fiscal due to the economic meltdown, but sees long-term potential in West Asia.

The company that caters to sectors such as manufacturing, banking and financial services, energy and petro-chemicals, and product engineering, said the growth rate for the fiscal would be between 23 and 25 per cent in rupee terms, compared with 45 to 50 per cent in the last 2 to 3 years.

“IT is slowing down in general. Verticals such as manufacturing, retail and telecommunications are slowing down as well. There is an overall slowdown,” said Mr Sudip Banerjee, Chief Executive Officer, L&T Infotech. Mr Banerjee said the current economic situation has forced the company to re-look at its revenue outlook for the time being.

In June 2007, L&T Group and L&T Infotech Chairman, Mr A.M. Naik, had said the company was eyeing a revenue of $1 billion by fiscal 2011, and had put in place a five-year strategic plan running up to 2009-2010.

“The plan is still intact. It might be delayed by 6 months or 1 year. What we had hoped to do by 2010 will be stretched to 2011. We will space it out. We are cautious about business,” said Mr Banerjee. The company has also put off its IPO plans till the appropriate time.

He said the company would continue to invest in enhancing its capabilities in infrastructure management, testing services, telecom and product development business, and its SAP practice. “We will continue to invest in the long-term prudently. We are not shutting down everything. We will continue when we see the right opportunity,” he added.

L&T Infotech, which gets about 65 to 70 per cent of its revenue from the US, is now looking to diversify further into other markets. The company would grow a lot faster in West Asia, where it has made a number of proposals, and has won some contracts. Thrust on that market will increase, Mr Banerjee said.

More Stories on : Software | Outlook | Larsen & Toubro Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line