Net sales (including other operating income) of Larsen & Toubro Infotech has increased 8.79% to Rs 3767 crore.  

Operating profit margin has jumped from 18.71% to 19.46%, leading to 13.20% rise in operating profit to Rs 733.20 crore.  Employee cost decreased from 63.77% to 62.89%.   Other expenses rose from 17.52% to 17.64%.   Other direct service cost rose from 15.62% to 15.97%.   

Other income fell 8.55% to Rs 111.2 crore.  PBIDT rose 9.76% to Rs 827 crore.  Provision for interest fell 1.69% to Rs 17.4 crore.  Loan funds remained nil.  

PBDT rose 10.03% to Rs 827 crore.  Provision for depreciation rose 6.92% to Rs 85 crore.  

Profit before tax grew 10.40% to Rs 742.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 190.3 crore, compared to Rs 175.3 crore.  Effective tax rate was 25.65% compared to 26.08%.

Minority interest decreased 60% to Rs 0.20 crore.  Net profit attributable to owners of the company increased 11.12% to Rs 551.50 crore.  

Promoters' stake was 74.09% as of 30 September 2021 ,compared to 74.25% as of 30 June 2021 . 

Consolidated Quarterly Result YoY comparison

Net sales (including other operating income) of Larsen & Toubro Infotech has increased 25.63% to Rs 3767 crore.  Sales of Banking Financial Services segment has gone up 27.59% to Rs 1,758.20 crore (accounting for 46.67% of total sales).  Sales of Manufacturing segment has gone up 20.87% to Rs 586.70 crore (accounting for 15.57% of total sales).  Sales of Energy & Utilities segment rose 5.89% to Rs 336.30 crore (accounting for 8.93% of total sales).  Sales of High Tech Media & Entertainment segment has gone up 48.45% to Rs 470.60 crore (accounting for 12.49% of total sales).  Sales of CPG Retail Pharma segment has gone up 22.94% to Rs 615.20 crore (accounting for 16.33% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.59% to Rs 748.70 crore.  PBIT of Banking Financial Services segment rose 12.85% to Rs 361.80 crore (accounting for 48.32% of total PBIT).  PBIT of Manufacturing segment rose 4.26% to Rs 139.40 crore (accounting for 18.62% of total PBIT).  PBIT of Energy & Utilities segment fell 26.17% to Rs 57.00 crore (accounting for 7.61% of total PBIT).  PBIT of High Tech Media & Entertainment segment rose 11.78% to Rs 74.00 crore (accounting for 9.88% of total PBIT).  PBIT of CPG Retail Pharma segment rose 26.91% to Rs 116.50 crore (accounting for 15.56% of total PBIT).  

PBIT margin of Banking Financial Services segment fell from 23.27% to 20.58%.  PBIT margin of Manufacturing segment fell from 27.54% to 23.76%.  PBIT margin of Energy & Utilities segment fell from 24.31% to 16.95%.  PBIT margin of High Tech Media & Entertainment segment fell from 20.88% to 15.72%.  PBIT margin of CPG Retail Pharma segment rose from 18.35% to 18.94%.  Overall PBIT margin fell from 23.00% to 19.88%.  

Operating profit margin has declined from 22.86% to 19.46%, leading to 6.96% rise in operating profit to Rs 733.20 crore.  Employee cost increased from 59.38% to 62.89%.   Other expenses fell from 17.76% to 17.64%.   Other direct service cost fell from 16.16% to 15.97%.   

Other income rose 203% to Rs 111.2 crore.  PBIDT rose 16.92% to Rs 844.4 crore.  Provision for interest fell 9.38% to Rs 17.4 crore.  Loan funds declined from Rs 861.00 crore as of 30 September 2020 to Rs 755.90 crore as of 30 September 2021.  Sundry debtors were higher at Rs 2,326.30 crore as of 30 September 2021 compared to Rs 2,033.60 crore as of 30 September 2020.  Cash and bank balance rose to Rs 688.70 crore as of 30 September 2021 from Rs 588.60 crore as of 30 September 2020.  Investments rose to Rs 3,416.40 crore as of 30 September 2021 from Rs 2,958.80 crore as of 30 September 2020 .  

PBDT rose 17.64% to Rs 827 crore.  Provision for depreciation fell 5.45% to Rs 85 crore.  Fixed assets increased to Rs 1,407.20 crore as of 30 September 2021 from Rs 1,275.70 crore as of 30 September 2020.  Intangible assets increased from Rs 657.40 crore to Rs 696.90 crore.  

Profit before tax grew 21.02% to Rs 742.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 190.3 crore, compared to Rs 156.3 crore.  Effective tax rate was 25.65% compared to 25.49%.

Minority interest decreased 83.33% to Rs 0.20 crore.  Net profit attributable to owners of the company increased 21.05% to Rs 551.50 crore.  

Equity capital stood at Rs 17.50 crore as of 30 September 2021 to Rs 17.50 crore as of 30 September 2020.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 74.09% as of 30 September 2021 ,compared to 74.36% as of 30 September 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Larsen & Toubro Infotech has increased 21.55% to Rs 7229.5 crore.  Sales of Banking Financial Services segment has gone up 24.72% to Rs 3,370.20 crore (accounting for 46.62% of total sales).  Sales of Manufacturing segment has gone up 16.24% to Rs 1,106.60 crore (accounting for 15.31% of total sales).  Sales of Energy & Utilities segment rose 2.53% to Rs 651.30 crore (accounting for 9.01% of total sales).  Sales of High Tech Media & Entertainment segment has gone up 38.23% to Rs 910.40 crore (accounting for 12.59% of total sales).  Sales of CPG Retail Pharma segment has gone up 19.16% to Rs 1,191.00 crore (accounting for 16.47% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 9.17% to Rs 1,402.50 crore.  PBIT of Banking Financial Services segment rose 16.82% to Rs 680.10 crore (accounting for 48.49% of total PBIT).  PBIT of Manufacturing segment fell 2.77% to Rs 239.00 crore (accounting for 17.04% of total PBIT).  PBIT of Energy & Utilities segment fell 1.91% to Rs 128.60 crore (accounting for 9.17% of total PBIT).  PBIT of High Tech Media & Entertainment segment rose 0.74% to Rs 136.70 crore (accounting for 9.75% of total PBIT).  PBIT of CPG Retail Pharma segment rose 14.85% to Rs 218.10 crore (accounting for 15.55% of total PBIT).  

PBIT margin of Banking Financial Services segment fell from 21.54% to 20.18%.  PBIT margin of Manufacturing segment fell from 25.82% to 21.60%.  PBIT margin of Energy & Utilities segment fell from 20.64% to 19.75%.  PBIT margin of High Tech Media & Entertainment segment fell from 20.60% to 15.02%.  PBIT margin of CPG Retail Pharma segment fell from 19.00% to 18.31%.  Overall PBIT margin fell from 21.60% to 19.40%.  

Operating profit margin has declined from 21.48% to 19.10%, leading to 8.09% rise in operating profit to Rs 1,380.90 crore.  Employee cost increased from 60.59% to 63.32%.   Other expenses fell from 17.93% to 17.58%.   Other direct service cost fell from 16.21% to 15.80%.   

Other income rose 127.12% to Rs 232.8 crore.  PBIDT rose 16.93% to Rs 1613.7 crore.  Provision for interest fell 12.25% to Rs 35.1 crore.  Loan funds declined from Rs 861.00 crore as of 30 September 2020 to Rs 755.90 crore as of 30 September 2021.  Sundry debtors were higher at Rs 2,326.30 crore as of 30 September 2021 compared to Rs 2,033.60 crore as of 30 September 2020.  Cash and bank balance rose to Rs 688.70 crore as of 30 September 2021 from Rs 588.60 crore as of 30 September 2020.  Investments rose to Rs 3,416.40 crore as of 30 September 2021 from Rs 2,958.80 crore as of 30 September 2020 .  

PBDT rose 17.81% to Rs 1578.6 crore.  Provision for depreciation fell 2.08% to Rs 164.5 crore.  Fixed assets increased to Rs 1,407.20 crore as of 30 September 2021 from Rs 1,275.70 crore as of 30 September 2020.  Intangible assets increased from Rs 657.40 crore to Rs 696.90 crore.  

Profit before tax grew 20.66% to Rs 1,414.10 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 365.6 crore, compared to Rs 298.8 crore.  Effective tax rate was 25.85% compared to 25.49%.

Minority interest decreased 30% to Rs 0.70 crore.  Net profit attributable to owners of the company increased 20.13% to Rs 1,047.80 crore.  

Equity capital stood at Rs 17.50 crore as of 30 September 2021 to Rs 17.50 crore as of 30 September 2020.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 74.09% as of 30 September 2021 ,compared to 74.36% as of 30 September 2020 .  

Cash flow from operating activities decreased to Rs 598.40 crore for YTD ended September 2021 from Rs 1,081.00 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 308.90 crore, compared to Rs 103.70 crore during the YTD ended September 2020.  

Yearly performance

Net Sale for the period was up by 14%YoY to Rs 12369.8 crore. In USD terms the revenue was up by 10% to USD 1670.1 million. But with OPM expand by 330 bps to 22%, the growth at operating profit was 34% to Rs 2725.1 crore. The PBT was up by 29% to Rs 2588.2 crore hit by lower OI and higher depreciation. The taxation was up by 35% to Rs 650 crore and thus the PAT was up by 27% to Rs 1938.2 crore. MI was up by 425% to Rs 2.1 crore and thus the net profit (after MI) was up by 27% to Rs 1936.1 crore.

Dividend

The Board has declared a interim dividend of Rs 15 per share. 

Management Comment:

Commenting on the performance Mr Sanjay Jalona, Chief Executive Officer & Managing Director said "We are happy to report the strongest sequential revenue growth and best ever Q2 of 8.9% in constant currency terms. As we cross the $ 2 billion annual revenue run rate, we continue to remain committed to growth in the future. We are witnessing strong demand and are scaling up on the supply side with our headcount up 31% year on year."