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Larsen & Toubro Infotech, a subsidiary of infra giant Larsen & Toubro, has reported a 17% YoY growth in its profits.
Not to be confused with L&T Tech, L&T Infotech is an IT services company founded in 1997. It provides IT services and digital solutions to a client base of over 450, with operations spanning over 30 countries.
The profit for the quarter ending on 31st March 2022 stood at Rs 637.5 crores, up 17% against Rs 545.2 crores, the profit for the quarter that ended on March 2021.
Also read about ICICI bank q4 results
Revenue from operations grew 31% YoY from Rs 3,269.4 crores last year to Rs 4,301.6 crores. In dollar terms, revenues of the company grew 26% YoY. The company managed to secure 4 large deals with the Total Contract Value crossing $80 million.
“We are delighted to cross the $2 billion revenue milestone with record growth of 26% in FY22, our strongest since listing. Our growth has been broad-based across verticals, service lines, client buckets, and geographies. The year has seen the highest new client openings and net headcount additions," said L&T Infotech CEO Sanjay Jalona.
The company was in the news recently due to reports that it was merging with IT services company Mindtree. Both companies have said that the reports claiming the same were speculative.
Larsen & Toubro acquires Mindtree in 2019 and holds a 61% stake in the company and 74% in L&T Infotech. A merger between the two companies, that provides similar services and are reporting comparable growth, seems to be in the near future. The merger would result in an IT Services giant worth $22 billion.
Brokerages have mixed sentiments regarding the shares of the company. It has been declining since January 2022. It saw some relief in the months of February and March as it plateaued but it declined again in April. Since the beginning of 2022, the share has declined 32% to close at Rs 5,093.85 on Friday.
Article by Aman Agarwal.
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