There will be no merging of L&T Engineering Services and L&T Infotech, says Chandrasekhar Kakal, chief operating officer, L&T Infotech.
In an interview to CNBC-TV18, Kakal says there two companies exist in order to bring in sharper focus.
"We will be able to develop the growth of both the companies separately and take may be both beyond USD 1 billion quickly and go for an IPO separately so that the valuation can become much better by a sharper focus," he adds.
Kakal says one can expect the IPO as soon as mid-2016.
Below is the verbatim transcript of the interview.
Q: You have joined L&T Infotech about 8 months ago. There are two companies right now there is L&T Infotech and L&T Engineering Services, what is the kind of synchronicity that exists between the two companies and can you breakup the kind of revenue footprint that it has?
A: If you look at L&T Corporation as a whole, it is about USD 16 billion in revenue into various activities from construction to heavy engineering to finance services to IT services. In construction itself there are very different constructions, road, rail, bridges, power plants and so on. Under that L&T Infotech and Technology services are two different subsidiaries with about USD 1.3 billion in revenue with about 30000 people.
Engineering services or the technology services focuses entirely on the embedded system, CAD/CAM (computer-aided design and computer-aided manufacturing) and product engineering part of it whereas Infotech focuses on application management, infrastructure management, testing services, application development and maintenance, package implementation, system integration, consulting and digital solutions. So, that is the breakup we have.
The synergy we have is that whenever it is sharply focused on engineering services technology services group takes over and then whenever it is application and infra services L&T Infotech is in the forefront. However, we leverage internally the capabilities of parent L&T organisation and we also have a control automation group, we have infrastructure capability, we have application management capability, we have engineering services capability, we can bring all of them together and make the synergy happen on a particular programme.
Q: Why function as two separate companies and why not look at probably merging the two firms? Also at some point L&T group has kind of laid out at various points that L&T would eventually look at listing of its IT arms. If at all you do go for a listing how would it work, would it be two separate listing or would you look at a merger and then list the company?
A: At this point in time as stated by our Chairman AM Naik, we have created two different subsidiaries to bring in sharper focus. AM Naik believes in focus. So, we will be able to develop the growth of both the companies separately and take may be both beyond USD 1 billion quickly and go for an IPO separately so that the valuation can become much better by a sharper focus. At this point in time our intention is to go for an IPO in the middle of 2016 separately at this point in time and as we go long it will happen either together or with a gap in time.
Larsen stock price
On February 12, 2015, Larsen and Toubro closed at Rs 1646.80, up Rs 32.60, or 2.02 percent. The 52-week high of the share was Rs 1774.70 and the 52-week low was Rs 976.10.
The company's trailing 12-month (TTM) EPS was at Rs 61.52 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 26.77. The latest book value of the company is Rs 362.13 per share. At current value, the price-to-book value of the company is 4.55.
Anda sedang membaca artikel tentang
No merger with LT Engg Srvs; IPO in mid-2016: LT Infotech
Dengan url
http://kebugaranhidup.blogspot.com/2015/02/no-merger-with-lt-engg-srvs-ipo-in-mid.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
No merger with LT Engg Srvs; IPO in mid-2016: LT Infotech
namun jangan lupa untuk meletakkan link
No merger with LT Engg Srvs; IPO in mid-2016: LT Infotech
sebagai sumbernya
0 komentar:
Posting Komentar