L&T Infotech banks on its parent for India growth

MUMBAI: L&T Infotech is counting on its parent group's strength in geographies such as the Middle East and India and in sectors such as defence to boost revenue in the next few years. The information technology arm of engineering major Larsen & Toubro, on the cusp of $1 billion in revenue as it prepares for an initial public offering, is looking to enter new regions and expand in existing non-US markets.

"L&T has a strong business in the Middle East and India and now most construction has an element of IT involved – smart cities and intelligent building design – so we see an opportunity to come into these projects through L&T," Chandrashekar Kakal, chief operating officer and a member on the L&T Infotech board, told ET.

Defence will also be a key sector in India with spending expected to increase, he said. The company reported a revenue of Rs 4,643 crore for the year ended March 2014, according to its filings with the Registrar of Companies.

"We have grown faster than the industry average over the last few years. This year, we will grow at the industry average and once we put our strategic plans in place, we would look to grow faster than the industry average in the next few years," Kakal said, referring to the company’s plans for an IPO.