L&T Infotech jumps after Q2 results

Larsen & Toubro Infotech rose 5.85% to Rs 1,586.55 after the software firm announced its Q2 results after trading hours yesterday, 17 October 2019.

Larsen & Toubro Infotech's consolidated net profit gained 1.20% to Rs 360.10 crore on 3.45% rise in net sales to Rs 2,570.70 crore in Q2 September 2019 compared with Q1 June 2019.

On year-on-year (YoY) basis, consolidated net profit fell 10% while net sales rose 10.3% in Q2 September 2019 over Q2 September 2018.

EBITDA grew 1.7% on QoQ basis and it declined 2.8% on YoY basis to Rs 465.70 crore in Q2 September 2019.

EBITDA margin fell to 18.1% in Q2 September 2019 compared with 18.4% in Q1 June 2019 and 20.5% in Q2 September 2018.

As on 30 September 2019, Larsen & Toubro Infotech's cash and cash equivalents stood at 349.50 crore over Rs 415 crore at the end of 31 March 2019.

Sanjay Jalona, the chief executive officer and managing director of Larsen & Toubro Infotech, said "In Q2, we delivered a steady 11.9% YoY growth in constant currency driven by on-track ramp up of large deal wins that we announced earlier. We won three large deals in this quarter, all of them from new clients, aggregating to net-new TCV of US$100 million. A healthy pipeline continued large deal momentum and fast-growing Digital services across all verticals make us optimistic about the future.

In a separate announcement, Larsen & Toubro Infotech (LTI) said it is acquiring Powerupcloud Technologies. With more than 180 employees, Powerup brings a strong team of cloud consulting, artificial intelligence and data analytics professionals to LTI.

The enterprise value for 100% share capital of which the shares are acquired PowerupCloud is $15 million on a cash-free, debt-free basis subject to working capital adjustments. The consideration will be paid as a combination of upfront and an earn-out over a period of three years.

Meanwhile, the S&P BSE Sensex was up 89 points or 0.23% to 39,140.83.

On the BSE, 8,426 shares were traded in the counter so far compared with average daily volumes of 18,002 shares in the past two weeks. The stock hit an intraday high of Rs 1,588.75 and an intraday low of Rs 1,523 so far during the day.

The stock hit a 52-week high of Rs 1,896.70 on 7 February 2019. The stock hit a 52-week low of Rs 1,436.65 on 22 July 2019.

Larsen & Toubro Infotech is engaged in computer programming, consultancy and related activities.

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