L&T Infotech Q3 PAT jumps 38% to Rs 519 cr on higher revenues, margins

Larsen & Toubro Infotech on Tuesday reported a 37.85 per cent jump in net profit to Rs 519.3 crore for the December quarter, mainly driven by a surge in revenue and margin expansion.

The IT arm of engineering major L&T had posted a net profit of Rs 376.7 crore in the year-ago period.

It reported a 12 per cent increase in revenues to Rs 3,152.8 crore for the quarter as against Rs 2,811 crore a year ago. Compared to the preceding September quarter, the revenues were up nearly 6 per cent.

Its chief executive and managing director Sanjay Jalona said the company's revenues have exceeded the levels attained in FY20 and exuded confidence of closing FY21 with revenue growth in high single digits.

The net income margin expanded to 16.5 per cent as against 13.4 per cent in the year-ago period and 15.2 per cent in the preceding September quarter.

Jalona said a higher utilisation of over 84 per cent, greater volume of work done onshore in India and faster revenue growth helped in the margin expansion.

The company is targeting to maintain the net income margin number between 14-15 per cent and will be investing accordingly into the business because it wants to be seen as a growth company, Jalona said.

Jalona said he is happy with the deal pipeline and the conversations with clients are centred around digital transformation and workforce modernisation contracts.

Refusing to comment on whether the worst is behind for the IT industry, which has been posting handsome performance numbers, Jalona said he is very optimistic about the vaccination.

The total headcount of the company increased to nearly 34,000 at the end of December from 31,419 in the year-ago period and 32,455 in the September quarter.

Attrition also came down to 12.4 per cent from 17.7 per cent in the year-ago period.

The company scrip on Tuesday rose 1.93 per cent to close at Rs 4,093.10 apiece on the BSE.