L&T Infotech to focus on services business

Engineering conglomerate Larsen & Toubro (L&T) will focus on the growth of services business as traditional businesses involve high risk and pay lesser margins compared to services, said a top executive of the company on Wednesday.

"Traditional EPC businesses make a margin of around 6-7 per cent while Services businesses make margins in the range of 15-16 per cent," said L&T Deputy Managing Director S.N. Subrahmanyan at a roadshow in the run up to its IT arm L&T Infotech's forthcoming Initial Public Offer (IPO).

Subrahmanyan exhorted that L&T is uniquely positioned to execute projects in EPC (Engineering, Procurement, Construction) to IT implementation, thereby giving it a wide-ranging expertise.

He said the company is executing security projects wherein it is installing thousands of cameras across a city, possessing the ability to erect poles, cameras, software and analytics, straddling the entire gamut of the projects.

L&T Infotech is selling 10 per cent stake to raise Rs 1,234 crore, opening the IPO from July 11-13. Parent company holds 85 per cent stake in the company.

The main focus of the L&T would be the US and European markets while India outlook would be very selective.

We will be very selective with our Indian operations, targeting projects like smart cities, digital India and government projects, said Subrahmanyan.

The 15-year-old IT company with 20,000 employees derives most of its revenue from the BFSI vertical.

--IANS

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