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diksha shah made post

How do you view the latest results of L&T Infotech announced on 15 July?

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3 weeks ago

Like the other IT companies till date, this subsidiary of L&T also did extremely well in the June quarter. In fact, L&T Infotech reported a 16.9% rise in profit before tax to Rs.559 crore even as total revenues were up by 18.7% at Rs.2949 crore for the Jun-20 quarter. It has been one more technology company not been overly impacted by the COVID-19.

While the pandemic and its lag effect did put some pressure on sales volume growth, it did not take any major hit on pricing. That led to decent growth in revenues. However, on a sequential basis, the top line and the bottom line were relatively lower. Even the 8% cut in tech spending projected by Gartner, has not really hit the company too hard.

There were also some positives in these tough times. L&T Infotech saw its headcount remain almost flat at over the 31,000 mark but the attrition rate fell from 16.5% to 15.2% in the Jun-20 quarter. Earlier, IT companies like Infosys and Wipro had given robust numbers and had also given an optimistic guidance. The September quarter will be critical.