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L&T Infotech Q4 FY20 net profit up 12.9% YoY

While the deal pipeline is strong, customer discretionary spends are coming down

May 19, 2020 / 09:05 PM IST

L&T Infotech registered a net profit of Rs 427.5 crore, up 12.9 percent year-on-year, for the quarter-ended March 31. Revenue in Q4 stood at Rs 3,011.9 crore, up 21.2 percent YoY.

For the full-year ending March 31, the company registered a revenue of Rs 10,878.6 crore, up 15.2 percent YoY. Net profit rose marginally (0.3 percent) to Rs 1,520.5 crore.

The company has declared a dividend of Rs 15.5 per share.

Commenting on the quarter gone by, Sanjay Jalona, CEO and MD, L&T Infotech, said while the deal pipeline is strong, customer discretionary spends are coming down on the back of COVID-19.

While the company does not have presence in travel and hospitality and negligible presence in retail, the impact will be felt in its energy and utilities vertical, which accounts for about 11 percent of overall revenue.

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LTI is also expecting pressure in banking and insurance in coming months. Insurance saw a 1.3 percent decline sequentially for Q4. BFSI accounts for about more than 40 percent of overall revenue.

As companies adopt to new normal, there will be more demand for cloud-based services as people move from on premise. This could be one of the areas of growth for the company.

The company has deferred wage hikes for FY20. No pay cuts have been announced. LTI employs 31,437 people.

Moneycontrol News
first published: May 19, 2020 09:05 pm

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