Larsen & Toubro Infotech Ltd's Q3FY19 consolidated net profit declines 6.2% qoq to Rs376cr : Beats Estimates

The company’s consolidated revenue stood at Rs2,473 cr, up 6.1% qoq and 31.3% yoy.

Jan 18, 2019 02:01 IST India Infoline Research Team

Larsen & Toubro Infotech Ltd Q3FY19

Consolidated Results Q3FY19: (Rs in cr)

Q3FY19 QoQ (%)
Revenue 2,472.90 6.1
EBIT 473.30 7.0
EBIT Margin (%) 19.1 17
Net Profit (adjusted) 375.50 [6.2]
***EBIT margin change is bps

Larsen and Toubro Infotech Ltd’s revenue grew by 6.1% qoq to Rs2,473cr. EBIT came in at Rs473cr, up 7% qoq. EBIT margin expanded by 17bps qoq to 19.14%. Company’s adjusted net profit stood at Rs375cr, down 6.2% qoq. Revenue and EBIT came above estimates of Rs2,440cr and Rs451cr respectively.

• Revenue from Manufacturing segment stood at Rs388cr, up 8.5% qoq driving overall revenue growth.
• Revenue from Banking, Financial Services & Insurance segment grew by 4.7% to Rs1,164cr.
• Employee benefit expenses stood at 57.3% of revenue vs. 57.8% qoq resulting in expansion of EBIT margin.
• Operating expenses stood at 20.7% of revenue vs. 20.3% qoq.
• Other income stood at Rs31cr vs. Rs97cr qoq resulting in Net profit decline.
• Tax rate for the quarter stood at 25.2% vs. 25.4% qoq.
• The company has entered into a definitive agreement to acquire 100% stake in Ruletronics Limited UK, Ruletronics Systems Inc. US and Ruletronics Systems Pvt Ltd, India (collectively hereinafter referred as 'Ruletron ics') on January 16, 2019 for an enterprise value of USD7.48mn on a cash-free, debt-free basis, subject to working capital adjustments. Total revenue of Ruletronics for their respective last financial year aggregated to USD3.35mn.

Technical View:

Larsen & Toubro Infotech Ltd is currently trading at Rs. 1,803, up by 28.05 points or 1.58% from its previous closing of Rs. 1,774.95 on the BSE.
The scrip opened at Rs. 1,800 and has touched a high and low of Rs. 1,810 and Rs. 1,760 respectively. So far 2,92,082 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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