Info-tech

L&T Infotech net up 12.9% in Q4

Our Bureau Mumbai | Updated on May 20, 2020

Larsen & Toubro Infotech Ltd

Net profit for FY20 flat at ₹1,520.5 crore

L&T Infotech has reported a net profit of ₹427.5 crore for the quarter-ended March, an increase of 12.9 per cent year-on-year. In the corresponding year-ago period, the net profit was ₹378.5 crore. On a sequential basis, the net profit rose 13.48 per cent over the ₹376.7 crore posted in December 2019.

For the financial year 2019-20, the profit came in at ₹1,520.5 crore, up marginally by 0.3 per cent from the ₹1,515.5 crore recorded in 2018-19.

Revenues in Q4 came in at ₹3,011.9 crore, up 21 per cent from the ₹2,486 crore in the year-ago period.

For the whole year (FY20), the company clocked a revenues of ₹10,878.6 crore, a 15.2 per cent rise over the ₹9,445.8 crore posted in FY19.

In dollar terms, L&T Infotech’s revenues stood at $409.9 million in Q4 FY20, a 15.9 per cent y-o-y growth. In constant currency terms, the revenue growth was 17.4 per cent y-o-y.

However, the company expects the next two quarters to be challenging as the Covid-19 factor plays out amongst its clients and discretionary spending also takes a hit.

Strong portfolio

Sanjay Jalona, CEO and MD, L&T Infotech, told BusinessLine that while the company has a strong portfolio in energy and utilities as well as manufacturing, it is likely to be impacted due to the crash in oil prices and reduced industrial activity across the world due to Covid-19. He however added that the impact on the company’s retail sector portfolio isn’t much as it has some clients in the packaged consumer goods sector, .

L&T Infotech is also expecting pressure in the BFSI sector as mortgages-related defaults occur. For the company, BFSI contributes around 40 per cent of its revenues.

L&T Infotech has declared a dividend of ₹15.5 per share. It has deferred wage hikes for FY20, but said that no pay cuts have been announced. The company has 31,437 employees.

Published on May 20, 2020

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