L&T INFOTECH Announces Quarterly Results (3QFY21); Net Profit Up 37.9%

Wed, 20 Jan

L&T INFOTECH has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

L&T INFOTECH Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	28,111	29,984	31,528	5.1%	12.2%
Other income	Rs m	642	367	689	87.7%	7.3%
Turnover	Rs m	28,753	30,351	32,217	6.1%	12.0%
Expenses	Rs m	22,834	23,129	24,207	4.7%	6.0%
Gross profit	Rs m	5,277	6,855	7,321	6.8%	38.7%
Depreciation	Rs m	709	899	819	-8.9%	15.5%
Interest	Rs m	212	192	197	2.6%	-7.1%
Profit before tax	Rs m	4,998	6,131	6,994	14.1%	39.9%
Tax	Rs m	1,231	1,563	1,801	15.2%	46.3%
Profit after tax	Rs m	3,767	4,568	5,193	13.7%	37.9%
Gross profit margin	%	18.8	22.9	23.2
Effective tax rate	%	24.6	25.5	25.8
Net profit margin	%	13.1	15.1	16.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 12.2% on a year-on-year (YoY) basis. The expenses were up by 6.0% YoY during the same period.
• The company's operating profit increased by 38.7% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 23.2% in 3QFY21 as against 18.8% in 3QFY20.
• Depreciation charges increased by 15.5% and finance costs declined by 7.1% YoY, respectively.
• Other income increased by 7.3% YoY during the quarter.
• Net profit for the quarter increased by 37.9% YoY. Net profit margins during the quarter increased from 13.1% in 3QFY20 to 16.1% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.1% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.7% QoQ during the same period.
• The company's operating profit increased by 6.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 23.2% in 3QFY21 as against 22.9% in 2QFY20.
• Net profit for the quarter increased by 13.7% QoQ, while net profit margins increased from 15.1% in 2QFY20 to 16.1% in 3QFY21.

To see how L&T INFOTECH has performed over the last eight quarters,please visit here.

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L&T INFOTECH Share Price Performance

Over the last one year, L&T INFOTECH share price has moved up from Rs 1,894.3 to Rs 4,114.0, registering a Gain of Rs 2,219.8 or around 117.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,446.1 (up 1.3%). Over the last one year it has moved up from 15,977.4 to 26,446.1, a gain of 10,469 points (up 65.5%).

Overall, the S&P BSE SENSEX is up 19.5% over the year.

Current Valuations

At the current price of Rs 4,114.0, the price to earnings (P/E) ratio of L&T INFOTECH stands at 39.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 14.6 times.