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L&T Infotech, which opened its initial public offering on Monday, has won two large government projects worth ₹1,100 crore.
In an interview with BusinessLine , L&T Group Chairman AM Naik said mega government projects would remain the key focus for the company, which currently earns just about 2.5 per cent of its revenues from the Indian market.
“We are 95 per cent abroad — 2.5 per cent in L&T and 2.5 per cent India. It is our intention in India when Mega projects start coming, like we did CBDT ₹600 crore and now we have ₹500-crore defence project,” Naik said.
The project for Central Bureau of Direct Taxes will be a part of a ₹1,000-initiative from CBDT called Project Insight that will help the tax department identify high value transactions and in profiling offenders. L&T Infotech will develop the software infrastructure for the project.
The defence project on the other hand is an ERP project as a part of Defence ship building.
Naik, however, said the entire ₹1,100 crore would not immediately reflect in the company's books.
“They have to be done over the years. So they don't impact immediately. It may not be ₹1,000 crore per year immediately. It will be ₹200-300 crore per year,” Naik said. For FY 2016, L&T Infotech's revenues were ₹6,143 crore while profit after tax stood at ₹922 crore.
The company, a fully owned subsidiary of L&T construction major Larsen & Tubro, is raising ₹1,200 crore through its IPO, the entire proceeds of which will go to the parent company.
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