L&T Infotech posts remarkable Q3 results

Larsen & Toubro Infotech reported PAT of Rs. 375.5 crore for the December quarter, which is an increase of 32.77 per cent YoY.

The company’s consolidated revenue from operations reached Rs. 2,472.9 crore in Q3FY19 from Rs. 1,883.8 crore in Q3FY18, posting a growth of 31.27 per cent. EBITDA rose to Rs. 508.8 crore in Q3FY19 from Rs. 321.6 crore in Q3FY18, thereby rising 58.20 per cent. Consequently, the company's net profit after tax (PAT) climbed to Rs. 375.5 crore in Q3FY19 from Rs. 282.8 crore in Q3FY18, registering an increase of 32.77 per cent. Basic EPS surged to Rs. 21.67 in Q3FY19 from Rs. 16.49 in Q3FY18, thereby rising 31.41 per cent.

The Banking, Financial Services & Insurance segment constituted a major chunk of the revenue from operations (47.08 per cent) as it generated Rs. 1,164.3 crore in Q3FY19, up 32.18 per cent YoY. The Manufacturing and Energy & Utilities segments generated revenues of Rs. 387.5 crore and Rs. 267.8 crore, respectively, up 19.37 per cent and 20.84 per cent, respectively. These segments constituted 15.66 per cent and 10.82 per cent, respectively of the total revenue from operations.

High-Tech, Media & Entertainment produced revenues of Rs. 277.8 crore in Q3FY19, up 38.14 per cent. This segment accounted for 11.23 per cent of total revenues. Lastly, the segment associated with CPG, Retail, Pharma & Others engendered revenues worth Rs. 375.5 crore in Q3FY19, posting a YoY growth of 46.85 per cent. It constituted 15.18 per cent of total operating revenues.

Also, L&T Infotech is set to acquire 100 per cent stake in Ruletronics Limited, UK, Ruletronics Systems Inc. US and Ruletronics Systems Pvt. Ltd, India. These entities are collectively referred to as Ruletronics. The acquisition will happen for an enterprise value of US$ 7.48 million on a cash-free and debt-free basis, subject to working capital adjustments. The total revenue of Ruletronics for their respective last financial year aggregated to US$ 3.35 million.

L&T Infotech has bagged a series of noteworthy deals. Denmark-based digital payment company, Nets, has chosen the company as its primary partner post vendor consolidation. Furthermore, the company has been selected by a global fintech company to provide agile assurance support for building an industry leading wealth management platform. A major petrochemical entity chose L&T Infotech for multiple engagements in order to prepare itself for S/4HANA migration. The company was awarded a cybersecurity project by a multinational energy giant to implement, configure and integrate Micro Focus ArcSight and Splunk Enterprise Security. These are only a handful amongst the many deal wins secured by the company. Recently, the company collaborated with ACORD to develop a comprehensive set of digital standards & solutions for the Insurance industry.

Meanwhile, on Monday, the stock of L&T Infotech opened at Rs. 1,802.00 per share and hit a high and low of Rs. 1,808.00 and Rs. 1,773.05, respectively. At 10:35 am, the stock was trading at Rs. 1,773.50, down 1.55 per cent.