Amid COVID-19, L&T Infotech chief optimistic that impact of pandemic is only short-term

IT company L&T Infotech on Tuesday reported around 13 per cent growth in the last quarter of fiscal 2019-2020. The consolidated net profit stood at Rs 427.5 crore. Its revenue was up 21.2 per cent to Rs 3,011.9 crore in the March quarter of 2019-20202 from Rs 2,486 crore in the year-ago period.

Commenting on the results, LTI, CEO and Managing Director, Sanjay Jalona, said, “We expect a strong FY 2021, but obviously there will be COVID-19 short-term challenges.”

He added that while the company has no clients in the tourism and hospitality sector, there are other sectors like retail; and oil and gas among other sectors that will be affected. He revealed that the IT company is anticipating some impact coming from banking, insurance and other financial services. But at the same time, it is looking at new opportunities that will open up due to this pandemic as more and more companies opt for ‘Work from Home’ even after the lockdown is over.

The company mostly has global players as their customers. When quizzed if protectionism will have an impact on their businesses, Jalona said, “Globalisation is a way of life. The world has moved towards protectionism in many ways in the last many years. We need to keep in mind the fact that the United States will not lose its dominance over technology (any time soon). So, we will have to find work in this new normal.” He added such situations will come as a learning for the future.

The company, which works mainly with multinational players, is abreast with the changes that are taking place.

For the full fiscal, the revenue grew to Rs 10,878.6 crore, while net profit was higher by 0.3 per cent at Rs 1520.5 crore in FY 2019-20 from the previous financial year. On Wednesday, the shares of L&T Infotech rallied nearly 7 per cent after the company reported a 12.9 per cent growth in consolidated net profit for March quarter.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal