Chennai, NFAPost: Global technology consulting and digital solutions company Larsen & Toubro Infotech has reported a 12.9% increase in net profit at Rs 427.5 crore for the fourth quarter ended March 31, 2020 (Q4FY20).
In the corresponding quarter last year the company had reported net profit of Rs 378.5 crore.
For the full financial year ended March 31, 2020, the company reported a marginal increase of 0.3% in its net profit at Rs 1,520.5 crore, compared to Rs 1,515.5 crore in the previous fiscal.
The company’s revenue for the fourth quarter last year stood at Rs 3,011.9 crore, growth of 7.1% over the corresponding quarter of the last year. Its total income for the quarter ended March 31, 2020, stood at Rs 3,082.1 crore.
“We are extremely proud of the strong work ethic of LTItes who rose to the challenge of an unparalleled global pandemic, exceeding client expectations and earning their trust. Our resilient business model, comprehensive digital transformation capabilities and flawless execution helped us deliver fourth consecutive year of industry leading double-digit revenue growth in FY20,” L&T Infotech CEO and MD Sanjay Jalona.
He added, “We are also pleased to announce two large deals in Q4 with net-new TCV in excess of $100 million, culminating in a record 8 large deal wins for us in FY20. With strong order wins, healthy revenue momentum and client centric growth strategy, we shall confront near term demand challenges and emerge stronger.”
The company’s top 5 clients contributed 31.8% revenues in FY 20. The Board of Directors has recommended a final dividend of Rs 15.50 per equity share for the financial year 2019-20.
According to analysts, the company does not have exposure to travel and hospitality, the sectors most hit by the covid-19 pandemic. Also, its retail exposure is limited. These factors will rescue the company from the changing business environment.
In addition to that, the management’s postponement of discretionary spends may, however, hit growth in the first half of the current fiscal. Clients in manufacturing, and energy and utilities may temper spending amid the demand slump. Last fiscal, these two verticals generated about a quarter of LTI’s revenues.
The company recently bagged a multi-year multi-million large deal for complete digital transformation, enhancing productivity and quality of service of a key government ministry by implementing new microservices based applications and building a data and analytics platform. Also, a large energy retail company selected LTI for an end to end managed services deal for its IT applications and infrastructure operations.
Meanwhile, shares of L&T Infotech jumped 6.51% to Rs 1,777.85 on the BSE on Wednesday afternoon.
An analyst at a domestic broking firm estimates 4% dollar revenue growth for the company in the current fiscal. That will be a significant slowdown from FY20. But outlook for other IT companies is bleaker with most unable to gauge the likely impact.
Besides recognised by the 1Q20 Global ISG Index as one of The Breakthrough 15 in Global, Americas, EMEA Sourcing Standouts, the company won as a Leader in ISG Provider Lens: SIAM/ITSM 2020 Study for US Market. LTI featured in Constellation ShortList: Innovation Services and Engineering for Q1 2020 and the company got recognition from Forrester’s Now Tech: IoT Consultancies In Asia Pacific, Q1 2020.