L & T INFOTECH

L&T infotech has helped more than 400 Clients through its specialization in global technology consulting and digital solutions. Founded in December 1996, it currently operates in 31 countries where they accelerate the digital transformation with their LTI Mosaic Platform. It is a wholly owned subsidiary of Larsen & Toubro Ltd. In 2001–2002 the company’s name was changed from L&T Information Technology Limited to Larsen & Toubro Infotech Limited.

Some of the strengths of L&T Infotech are diversified revenue stream, strong customer base, global presence, strong financial performance, the revenue of US $ 650 million and employee strength of 15,000, almost negligible debt and strong cash generating ability from core business – Improving Cash Flow from operation for last 2 years.

The business model is such that 27.6% of the revenue comes from the financial services industry, 17.8% from Insurance, 11% from Energy and Utilities, 16.8% from manufacturing, 11.2% comes from Hi-tech and the remaining from others. The geographical distribution is such that 69% comes from North America, 15.8% comes from Europe, 15.3% comes from other 20+ countries in the world. On the Clientele part, the company has 6+ clients in the 50+ million order bracket, 16+ clients in the 20+ million bracket, 27+ clients in 10+ Million brackets and 53+ clients in the 5+ million-dollar order bracket.

The board has recommended a final dividend of Rs 25 per equity share for the financial year 2020-21. L&T Infotech (LTI) showed growth in revenue by 8.5%  to Rs 3,269.4 crore in Q4FY21 compared to Rs 3,011.9 crore in Q4FY20 while an increase of 27.6% in consolidated net profit to Rs 545.7 crore Q4FY21 against a net profit of Rs 427.5 crore in Q4FY20. Also, L&T Infotech assets grew by 21% YOY in Q4FY21 and stood at 10,709 crores against 8,825 crores.

The Q4 results of L&T Infotech were gratifying.