JOIN US Following the footsteps of some of their peers, Larsen & Toubro’s IT arm L&T Infotech, is betting big on the digital platform.
“We regularly track new technologies, industry segments and market trends in the IT solutions market and believe that digitalisation will increasingly become systematically critical in the future. We plan to further enhance our digital platforms, build industry and technology frameworks, the internet of things (IoT), business process digitalisation and end-to-end digital transformational delivery capabilities,” L&T Infotech said in its red herring prospectus (RHP).
L&T Infotech is planning to hit the markets with an IPO in the second week of July to raise around Rs 1,200 crore.
The company is also planning investments in startups to enhance its digital offerings. “We plan to invest seed capital in startups, which will allow us to benefit from their innovation capabilities and digital offerings. We believe this will help us enhance our digital offerings and in turn, give a platform and opportunity to scale up to startups,” the company said.
Digital revenues for Tata Consultancy Services had crossed $2 billion in FY16 and Tata Group chairman Cyrus Mistry had stated during the TCS annual general meeting recently that the company is well positioned to lead the digital revolution.
According to the company’s RHP, the company is seeking geographical expansion in some of the countries where it has identified some potential.
“While we intend to continue expanding our presence in the US and Europe, we also plan to expand our geographical reach in other markets that we have identified as having potential, including Australia, Singapore, Japan, South Africa, India and the Middle East. We are in the process of augmenting our teams in these markets to further explore the opportunities therein,” the company said.
L&T Infotech has been historically dependent on North America and Europe for most of its revenues. In financial years 2016 and 2015, revenues originating from North America represented 69% and 68.6%, respectively of the company’s revenues from continuing operations.
In financial years 2016 and 2015, revenues originating from Europe represented 17.4% and 17.9%, respectively of the company’s revenues from continuing operations.