IT company L&T Infotech's Q2 net profit rises 27% to Rs 457 crore

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IT company L&T Infotech (LTI) on Tuesday reported a 26.7 per cent increase in consolidated net profit to Rs 456.8 crore for the quarter ended September 2020.

This is against a net profit of Rs 360.4 crore in the same period a year ago, LTI said in a statement.

Its revenue grew 16.6 per cent to Rs 2,998.4 crore in the reported quarter from Rs 2,570.7 crore in the year-ago period.

Sequentially, the net profit was up 9.7 per cent, while the topline rose 1.7 per cent. In constant currency terms, revenue increased 2.3 per cent quarter-on-quarter and 10.5 per cent year-on-year.

"We are pleased to report 11.2 per cent y-o-y growth in revenues and 26.7 per cent y-o-y growth in net profit in Q2. We are also happy to announce a large deal with net new TCV (total contract value) in excess of USD 40 million in analytics," LTI Chief Executive Officer and Managing Director Sanjay Jalona said.

The company's large deal pipeline remains strong and it sees increased traction in digital, cloud and analytics space, he added.

"The pandemic has made it apparent that organisations need to reimagine their target operating models embracing digital transformations to remain relevant in the marketplace," Jalona said.

This presents tremendous opportunities for companies like LTI with comprehensive digital transformation capabilities, he added.

Shares of LTI closed at Rs 2,964.65 apiece, down 1.7 per cent from the previous close on the BSE.

LTI said its digital revenues accounted for 42.9 per cent of its overall revenues.

The company's revenue in US dollar terms grew 11.2 per cent year-on-year to USD 404.5 million.

Its total headcount stood at 32,455 people at the end of the September 2020 quarter, while attrition was at 13.5 per cent.

The board of directors has declared an interim dividend of Rs 15 per equity share. T

The board also approved a scheme of arrangement for merger of Syncordis Software Services India and Ruletronics Systems with the company.

Syncordis India and Ruletronics India are wholly-owned subsidiaries of LTI.