IT services firm L&T Technology Services Ltd, a subsidiary of engineering conglomerate L&T, reported an increase of 20.93% in net profit for the fourth quarter.
The company reported a profit of Rs 19.24 crore for the quarter ended March 2019 compared with Rs 15.91 crore for the corresponding period in the previous year, it said in a stock-exchange filing. In the third quarter, the company had reported a profit of Rs 18.61 crore.
Total income jumped 27.33% to Rs 134.31 crore from Rs 105.48 crore. In the third quarter, the company had reported a total income of Rs 135.28 crore.
For the full year, total income surged 34.52% to Rs 530.11 crore while net profit jumped 51.73% to Rs 76.84 crore.
In terms of segments, revenue from transportation, process industry, industrial products, medical devices, telecom and hi-tech showed a year-on-year increase. Transportation and telecom and hi-tech industries were the largest contributors of revenue with Rs 161.86 crore and Rs 138.03 crore respectively, followed by industrial products at Rs 101.96 crore.
In a separate filing, the company said that Bhupendra Bhate, the chief operating officer of the company, is stepping down from his position effective May 3. Bhate will take up the role of chief innovation officer to provide a boost to the company's innovation and technology practice.
The engineering conglomerate is engaged in a takeover battle for IT services firm Mindtree. The company has completed a 20% stake purchase in Mindtree from its largest independent shareholder VG Siddhartha for more than Rs 3,200 crore for a price of Rs 980 per share.
L&T is expected to acquire another 6% over the next few days, increasing its stake to 26% in the IT firm, which will trigger an open offer.
L&T had announced in March its intention to buy 31% stake in Mindtree through an open offer, which will begin on May 14 and close on May 27. L&T has plans to hike its overall stake in Mindtree to 66%, if things fall in place.
Mindtree had crossed $1 billion in annual revenue in the last fiscal year. It reported a 9% growth in net profit for the fourth quarter to Rs 198 crore. Net revenue for the quarter through March jumped 25.6% to Rs 1,839.4 crore.
Mindtree's founder-promoters, who own a little more than 13% stake in the firm, had opposed L&T's bid.