Analysts on an average had expected profit of Rs 231 crore on revenues of Rs 1,665 crore for the quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded by 150 basis points to 21.4% from 19.9% in a year ago quarter.
The board of directors of the company has declared a final dividend of Rs 9.70 per equity share.
“Our superior performance in Q4 and full year FY17 is a result of our intense focus on client success and comprehensive transformation capabilities across digital, analytics, IoT, automation and cloud. With a 3.6% Q-o-Q growth in Q4 we are ending the year with a healthy 9.3% Y-o-Y growth in USD revenues,” said Sanjay Jalona, Chief Executive Officer & Managing Director.
LTI, backed by strong parentage in Larsen & Toubro (L&T) has the right ingredients in form of presence across large spend verticals and service lines, good set of marquee clients and excellent track record on client mining.
Analysts at Antique Stock Broking believe these virtues will help it to scale up to the next league.
“LTI's investment in digital and automation will further strengthen its client centricity and make it much more relevant in the changing technological landscape. The company's endeavour is to be in the top 3 on revenue growth parameter in comparison to peer list comprising of top 5 IT players and Hexaware Technologies and Mindtree,” the brokerage firm said in its initiating coverage and maintains ‘buy’ rating on the stock with target price of Rs 840.
At 11:04 am; the stock was up 3.7% at Rs 736 on BSE as compared to 0.43% decline in the S&P BSE Sensex. It is trading at its highest level since listing on July 21, 2016. The IT unit of L&T had raised Rs 1,243 crore through initial public offer by issuing shares at price of Rs 710 per share.