Aim to cross $1 bn in revenue before 2016 IPO, says L&T Infotech

Mumbai: L&T Infotech, the IT services and solutions arm of the EPC major, is looking at revenues of over $1 billion in FY16 before it comes with its IPO in mid-2016.

“(We are) working on strategies for revenues to cross $1 billion and go for IPO in mid 2016,” its chief operating officer Chandrashekar Kakal told PTI here.

The company is likely to close FY15 with revenues of $900 million, with a revenue growth at par with the industry’s 13 percent, he said.

Two accounts from the energy and oil space faced difficulties in FY15, resulting in the dip in revenue growth, he said, adding that in the previous fiscal, the company had closed with a 19.6 percent topline growth.

“There were couple of accounts that had difficulties, we’ve taken stock of that,” he said.

Further details like the amount to be raised from the IPO and promoter L&T’s dilution in the entity are yet to be firmed up, he said.

The company will be focusing on the US, some part of Europe like Nordic countries and underexploited UK, he said, adding that it is also well placed in the rest of the world and looking for growing opportunities there.

India is also a very exciting opportunity because of newer schemes like the Smart Cities project, where the company will be partnering with its parent to work as an end-to-end “master system integrator,” he said.

In the Middle East, it is hoping to leverage on the $800 million in EPC contracts won by its parent for more work.

When asked about the percentage of revenue coming from its parent L&T or works being undertaken by it, Kakal said it is “very small.”

At present, it gets 64 percent of revenues from the US, 20 percent from Europe and the remaining from the rest of the world.

While two clients in the energy sector are facing headwinds, Kakal said banking and financial services, media and entertainment will do well in the times ahead.

The company, which employs 20,000 people at present, has given offers to 2,500 freshers at campuses this year who would be joining from June 2015 onwards.

It works with utilisation levels of over 80 percent, excluding trainees, Kakal said adding is at par with the industry.

PTI