L&T Infotech Q2 net profit drops 10% to Rs 360.4 cr, acquires PowerupCloud

IT company L&T Infotech (LTI) on Thursday reported 10 per cent decline in consolidated net profit to Rs 360.4 crore for the quarter ended September 2019.

This is against a net profit of Rs 400.3 crore in the same period a year ago, LTI said in a statement.

Its revenue, however, was up 10.3 per cent to Rs 2,570.7 crore in the reported quarter from Rs 2,331.2 crore in the year-ago period, it added.

Seen sequentially, the net profit was up 1.3 per cent, while the topline rose 3.4 per cent.

"In Q2, we delivered a steady 11.9 per cent year-on-year growth in constant currency driven by on-track ramp up of large deal wins that we announced earlier," LTI CEO and Managing Director Sanjay Jalona said.

We won three large deals in this quarter, all of them from new clients, aggregating to net-new total contract value of about $100 million, he stated adding that a healthy pipeline, continued large deal momentum and fast-growing digital services across all verticals makes LTI optimistic about the future.

LTI has also announced the acquisition of PowerupCloud Technologies at an enterprise value of $15 million.

This acquisition will help LTI strengthen its cloud services capabilities through a combination of right leadership, team, assets and ecosystem connects, which in turn will enable LTI to provide better services to its existing and new clients, the statement said.

"We are delighted to announce the acquisition of Powerup, a born-in-cloud company that has completed over 150 engagements in cloud," Jalona said.

The closing of the cash transaction is expected within six weeks.

PowerupCloud has over 180 employees with capabilities in cloud consulting, cloud-managed services, artificial intelligence and data analytics. Its revenue for FY19 stood at $3.5 million.

Shares of LTI closed at Rs 1,498.90 apiece, down 1.67 per cent from the previous close on BSE.

LTI said its digital revenues accounted for 40 per cent of its overall revenues.

The company's revenue in US dollar terms grew 10.8 per cent year-on-year to $363.8 million.

Its total headcount stood at 30,979 people at the end of September 2019 quarter, while attrition was at 18.4 per cent.