L&T Infotech's consolidated net profit rises 13% YoY to Rs 427.5 cr in Q4

Larsen & Toubro Infotech (LTI)'s consolidated net profit for the quarter ended March 2020 (Q4FY20) rose 13 per cent year-on-year to Rs 427.5 crore. It rose 13.5 per cent on a sequential basis.

Revenue of the Mumbai-headquartered IT services firm rose 21.2 per cent year-on-year to Rs 3,011.9 crore during this period.

The numbers rose 7.1 per cent sequentially. Revenues were at $409.9 million, a 4.7 per cent gain in constant currency terms on a quarter-on-quarter basis. Operating margin of the Larsen & Toubro group company expanded 50 basis points sequentially to 16.7 per cent in Q4FY20. The mid-tier IT firm has won two large deals in the March quarter with net-new total contract value (TCV) in excess of $100 million, thereby closing the year with record 8 large deals.

The board has also recommended a final dividend of Rs.15.5 per share, subject to approval at the annual general meeting.

"Our resilient business model, comprehensive digital transformation capabilities and flawless execution helped us to deliver a fourth consecutive year of industry leading double-digit revenue growth in FY20,” said Sanjay Jalona, CEO & managing director, LTI.

The numbers were largely matching with street expectations with a beat on the revenue front. Edelweiss pegged the profit at Rs 399 crore for the quarter while revenue was seen at Rs 2,667.5 crore. "We expect revenue growth to come back strong while a 3.2 per cent QoQ in constant currency as growth returns in top client," it said in an earnings preview note.

This comes as its larger IT peers flagged off the uncertainties arising from the COVID-19 outbreak. Infosys said it was unable to provide guidance on revenues and margins for FY21. TCS cautioned maximum impact of the crisis would be felt during the first quarter of the current financial year (Q1FY21).