Larsen & Toubro Infotech Ltd.

(India)
Source: - India - DION - Standard for Listed Non Banking Company Financials (Audited) - Standalone

Statement type Annual, Individual Annual, Individual

Period end date 2016-03-31 2015-03-31
Units Ten Millions INR Ten Millions INR

Income Statement 2016 2015

Total operating revenue 5,569.52 4,744.40
Net sales revenue 5,569.52 4,744.40
Administrative expenses (555.46) (493.78)
Employee benefit expense (3,383.84) (2,806.47)
Wages and salaries (3,383.84) (2,806.47)
Other costs by nature (34.78) (28.72)
Depreciation, amortization and impairment charges (103.45) (90.73)
Net other operating result (667.06) (460.54)
Other operating expenses (667.06) (460.54)
Operating profit (EBIT) 824.93 864.16
EBITDA 928.38 954.89
Financial result (10.36) (10.42)
Finance Expenses (10.36) (10.42)
Interest expense (10.36) (10.42)
Net - other non-operating result 338.61 88.78
Profit before income tax 1,153.17 942.53
Income tax (215.04) (169.57)
Profit after income tax 938.13 772.96
Other Extraordinary Items - 0.64
Net Profit (Loss) for the Period 938.13 773.60

Balance Sheet 2016 2015

Total assets 3,238.03 2,906.87
Non-current assets 661.56 819.09
Property, plant and equipment 264.99 261.70
Other property, plant and equipment 264.99 261.70
Construction in progress 18.86 24.30
Intangible assets and goodwill 55.35 75.55
Long-term financial assets 322.36 457.54
Other non-current financial assets 322.36 457.54
Deferred assets - -
Current assets 2,576.48 2,087.78
Trade and other receivables 1,089.60 1,031.44
Current trade receivables 1,089.60 1,031.44
Prepayments, accrued income and other deferred current assets 1,364.70 922.91
Cash and Cash Equivalents 122.17 133.43
Cash at banks and on hand 122.17 133.43
Total equity and liabilities 3,238.03 2,906.87
Total equity 1,863.27 1,925.45
Equity attributable to owners of the parent 1,863.27 1,925.45
Issued capital 16.98 16.12
Ordinary shares 16.98 16.12
Other reserves 1,846.29 1,909.33
Total liabilities 1,374.75 981.42
Non-current liabilities 95.85 21.57
Non-current loans and borrowings - 13.89
Deferred revenue, accrued expenses and other deferred non-current liabilities
95.85 7.68
Current liabilities 1,278.90 959.85
Current loans and borrowings 54.47 203.64
Trade and other payables 314.15 252.85
Provisions for other liabilities and charges 517.39 289.57
Other current liabilities 392.89 213.79

Cash Flow Statement 2016 2015

Net cash flow from (used in) operating activities 769.38 580.47
Cash generated from operations 769.38 580.47
Adjustments for: Other adjustments (383.80) (362.70)
Changes in: Other changes 1,153.17 943.17
Net cash flow from (used in) investing activities 34.24 (97.88)
Other investing activity cash flows 34.24 (97.88)
Net cash flow from (used in) financing activities (816.72) (494.69)
Other financing activity cash flow (816.72) (494.69)
Net increase (decrease) in cash and cash equivalents (13.11) (12.11)
Cash at the beginning of the period 135.28 145.54
Cash at the end of the period 122.17 133.43
Annual, Individual Annual, Individual Annual, Individual
2014-03-31 2013-03-31 2012-03-31
Ten Millions INR Ten Millions INR Ten Millions INR

2014 2013 2012

4,643.94 3,613.42 2,959.55
4,643.94 3,613.42 2,959.55
(481.41) (384.22) (322.90)
(2,645.66) (2,108.57) (1,770.08)
(2,645.66) (2,108.57) (1,770.08)
(30.92) (28.28) (23.72)
(68.29) (62.25) (56.58)
(420.75) (287.78) (223.38)
(420.75) (287.78) (223.38)
996.91 742.32 562.89
1,065.20 804.57 619.47
(29.77) (19.77) (35.80)
(29.77) (19.77) (35.80)
(29.77) (19.77) (35.80)
(81.09) 16.73 9.00
886.05 739.29 536.08
(188.83) (158.34) (131.32)
697.22 580.95 404.76
206.03 (20.97) 1.16
903.26 559.98 405.93

2014 2013 2012

2,505.81 2,189.37 1,981.47
799.73 761.93 716.93
261.04 222.55 217.02
261.04 222.55 217.02
50.64 78.32 28.44
33.22 31.61 30.15
454.83 423.66 439.29
454.83 423.66 439.29
- 5.79 2.03
1,706.09 1,427.43 1,264.56
849.58 723.40 626.67
849.58 723.40 626.67
710.96 590.44 514.95
145.54 113.59 122.93
145.54 113.59 122.93
 2,505.81 2,189.37 1,981.47
1,468.40 1,232.99 1,027.73
1,468.40 1,232.99 1,027.73
16.12 16.12 16.12
16.12 16.12 16.12
1,452.28 1,216.87 1,011.61
1,037.39 956.38 953.75
44.66 36.19 45.23
26.63 36.19 45.23
18.03 - -
992.73 920.19 908.52
80.69 170.36 203.33
225.57 189.14 172.07
250.29 187.71 165.59
436.18 372.98 367.52

2014 2013 2012

613.09 482.92 324.95
613.09 482.92 324.95
(273.92) (254.79) (212.29)
887.00 737.71 537.25
162.34 (90.60) (36.00)
162.34 (90.60) (36.00)
(743.48) (401.67) (297.30)
(743.48) (401.67) (297.30)
31.95 (9.35) (8.34)
113.59 122.93 131.28
145.54 113.59 122.93
 FY 2016 Data
Revenue YoY Growth Net Profit Net Profit EV/Sales EV/EBITDA EV/EBIT P/E
Company (in Cr.) rate (in Cr.) Margin multiple multiple multiple multiple
TCS 108,646 14.8% 24,292 22.4% 13.80 19.10
Infosys 62,441 17.1% 13,491 21.6% 4.64 15.95 17.17 22.04
HCL 40,913 14.6% 7,354 18.0% 7.91 17.40 18.23 24.33
Tech Mahindra 26,494 17.1% 3,118 11.8% 2.05 12.57 14.96 14.29
Mphasis 6,088 5.1% 669 11.0% 3.4 18.87 19.97 22.52
L&T Infotech 5,847 17.5% 992 17.0% 1.91 8.90 9.69 13.10
Mindtree 4,690 31.7% 603 12.9% 2.48 13.31 15.87 18.09

Mean 4.0 15.5 17.3 19.8

Median 2.9 15.4 17.1 20.3

Valuation Matrix
Multiples EV/Sales EV/EBITDA EV/EBIT P/E

Valuation
based on 2.9 15.4 17.1 20.3
comparable
companies
Median
Fair Enterprise 17,369.90 19,454.63 19,838.36 298,222.53
or Equity Value
Subtract Net 1,374.75 1,374.75 1,374.75 NA
debt
Fair Equity 15,995.15 18,079.88 18,463.61 298,222.53
Value
Price per share 941.91 1,064.67 1,087.27 17,561.49
Assumptions:
Rf 7.50%
MRP 9%
Asset Beta
Cost of debt

Calculations:
Beta equity 0.075
D/E
WACC

Forecasted P&L and Balance sheet for L&T Infotech

2016 2017 E 2018 E 2019 E 2020 E 2021 E
Revenue 5,908.13
Administrative expenses 555.46
Employee benefit expense 3,383.84
Other operating expense 701.84
EBITDA 1,266.99
Depreciation & Amortization 103.45
EBIT 1,163.54
Interest expense 10.36
EBT 1,153.18
Tax @ 25% 288.30
PAT 864.89
Working Capital
Capital expenditure

FCFF
TV
PV of FCFF
Enterprise Value 0
Debt (Book Value)
Market capitalization 0
No of shares outstanding 16.982
Share price 0
11,276.21
1.908592
9.691296