L&T Infotech Ltd IPO Message Board (Page 50)

Some members have highlighted that a big part of the profit is extra ordinary income being a major part in NP i am not sure how other IT extra ordinary income has anyone checked. however in case of l&T info Actual 2016 extra ordinary income is zero from RHP from page 61
Year Extra ordinary income
2016 NIL
2015 7.9 Cr
2014 300 Cr
2013 NIL
2012 NIL

So people worry abt extra ordinary income is false

Septa ji ye other income ka factor aapke dear eagleye ne birel kiya hi

she just asking if this is other income is an issue which IMO is not a issue (other income). I would be more worried if other income is NIL.... Eagleye want is pulse with ur broker with this issue my source is that many have negative view given IT head winds then the offer price

Hello eagleye how many times will l&t ipo subscribe
According to you pls reply

If ONLY YOY increase of other income, from 2015 to 2016 (295-91)of 204crs is deducted from ebidta, then correspondingly PAT will also get decreased, EPS will also be 15% lesser(not exactly calculated).
It is like a double edged sword.
Better to wait & watch for qib figures and make a decision.
Almost half of anchor investors are from insurance sector, has anyone made substantial money by investing in ULIPs?

IPO tracker ji,
Please come and teach my father about drawbacks of ULIP investment. He is highly invested in ULIP and Bank FD. I m convincing him since long to convert their FD and ULIP investment in Highly rated Direct Mutual Funds but they do not take my advise seriously probably due to lesser experience in financial market.

I get many clients I just till them just start small may be just FD interest once they see NAV of the MF they invest is giving good return they move however tell them it is 5 years plan now with low FD rates may be u can convince ur father

nothing left for investors may list at discount i may not apply because eps is 36 only

what u expect from DORY

Lol mehul mehta is really DORY. He forgets what he said & changes his mind.

Review of L&T Infotech IPO by Value research online (https://www.valueresearchonline.com/story/h2_storyview.asp?str=31484)

L&T Infotech IPO - An attractive buy?
A tech company with solid top and bottom line growth and little debt - we''ve run our tests on it. Read on to see them

By Neil Borate | Jul 6, 2016

Founded in 1996, L&T Infotech, the child of the hallowed Larsen and Toubro is now being bid adieu from the parental nest - albeit only partly. L&T holds a 94.96% stake in the company of which it is now selling about 10%. Half of the shares sold, will be offered to institutions. The other half will be split between high net worth individuals and retail shareholders. Think the company has a lot to do with engineering and infrastructure? Think again. Nearly 50% of revenue comes from clients in the banking and insurance space.The company has 250 clients, most of which, as is the norm in the IT space, tend to stick around. One hundred of them have been with the company for over 3 years. They have also been adding new clients at a pace of over 50 a year in the last 3 years. Revenue and profit growth has been solid with the former growing at almost 20% and the latter at almost 24% over the past 5 years. 70% of revenues are denominated in USD and the same proportion is derived from North America, a nice hedge against INR depreciation and India-specific risk.

L&T Infotech''s concentration of clients (the top 20 account for 2/3rds of its revenues) is a concern. As is the intense competitive scenario in the IT industry, notably new competition from China, the Philippines, Eastern Europe and Latin America. And there''s also the issue of clients owing them a lot of money - debtors comprise 34% of total assets. However this is not greatly dissimilar to industry standards with TCS''s accounts receivable standing at 27% of assets and Mindtree''s at 30% of assets.
The company fails 8 of our 27 parameters mostly due to the concerns expressed above. On the other hand, it also passes 19. Have a look at them below. No reward is without risk and no risk is without reward, as the saying goes.
Oh did we forget to mention? Retail shareholders get a discount of Rs 10 per share (about 1.4%). However you cannot bid for more than Rs 2 lakh worth of shares to qualify. Go forth and subscribe.

avoid ya apply only listing gain pls reply reply eagleye and septa sir

Investors with listing gain mindset must avoid this issue.

As someone rightly said
Protect your capital
and never forget the first rule.

This proverb fits well for this issue

L&T ka ipo bharna matlab apne pero pe kuhadi marina.

Pls suggest ,to apply or not....

Considering capital market rating of 48 and brand name one can apply. In worst case if go in discount on can buy at lower levels considering mentioned things.
So in my view one can take chance.

After a long time, so much difference of opinion has been created in any IPO in this forum purely based on financials.

someone are saying to invest . someone says avoid and enter after discount listing.

mostly i agreed with septa sir on fundamental basis but for the first time , i am not convinced with their perception on this issue.

there are likely chances that i may list in discount to issue price even if it sails, not so much is left in the form of listing gains.

For investors , who purely apply for the purpose of listing gain/ wants to exit in short term, will not apply in this issue.

one may argue that , the future of the company bright. i am convinced partly on this ground. one may see the operating cost to operating income ratio. it is increasing YoY so the PBT exco other income is almost flat since long despite robust growth in Top line (sales) and this issue is not resolved / discussed/ clarified by management till yet.

PBT
2015-16 Rs. 1147 Crores
2014-15 Rs. 926 Crores
2013-14 Rs 854 Crores

Other Income
2015-16 Rs. 295.96 Crores
2014-15 Rs. 91.50 Crores
2013-14 Rs. -ve 83.32 Crores

PBT Exco Other Income
2015-16 Rs. 851 Crores
2014-15 Rs. 835 Crores
2013-14 Rs. 917 Crores

Other members is requested to respond /share their views on the same.

actual other income is not a big worry it means the company money is invested in MF FD dividend from subsidiary and for IT company forex hedge form a big part if the indian rupee get weak it is good if it get strong then it will have adverse effect on the balance sheet so nothing to worry important factor is extra ordinary income not other income

on annexure XVIII the detail break up of other income is stated have a look on page 218

ANCHOR INVESTORS GOOD I WILL APPLY FOR LISTING GAINS

Double dholki ek baat kur

Not left much on table fair value 650

Big Avoid

Mindtree at 654 NAV 143
HCL at 721 NAV 138
L&T at 710 NAV 119
Mphasis at 547 NAV 119
Tech Mahindra at 500 NAV 115

Please decide accordingly

Ok septa ji i will also applye because i am sure that negativ listing is not possible

nothing is sure mate chance of list of discount is also possible also the upside will be limited. Generally IT company have already corrected a lot given the head winds so at least u r investing in a company which market has discounted a lot for all the head wind so once good quarterly comes it will improve IMO

I think we should apply to this IPO w/o expecting listing gains. It may touch 900/1000 levels after one yr.

The HNI or the NII quota is likely to subscribe between 110 to115 times. As compared to raising approx 186 crores or 15 percent of the total issue, the lead bankers and associates have commenced limiting the HNI fundings. Potak, delweiss, KM, are giving only 50 crs commitment now. Later they might revise on the last day. The HNI quota is likely to get approx. 29,000 crs worth of applications. All 3 segments FII, HNI or NII and Retail will be oversubscribed during the first 3 hours on Monday. In total the issue is likely to get big applications on the last day for HNI quota and cross the 100 times mark .

Apply in L&T Ipo.....i think it may subscribe 3 times only...so higher chance to have allotment but remember u have to exit as early as possible because ipo will list on lower premium....and aftet few time it will come in discount rate....

gamble (Jul 9, 2016 10:41:58 PM IST)

For: L&T Infotech Ltd

What are ur expectation on qib,hni data ??..

Khemka (Jul 9, 2016 10:55:29 PM IST)

For: L&T Infotech Ltd

Qib 2/3 times, hni 4/5 times probably


Mine are (probably)
qib 12/18x
Nii 25/30x

FY12 9.58
FY13 22.10
FY14 -83.32
FY 15 91.50

average of 4yrs comes to 10cr appx. .. *FY 14 should be deducted since it is an exceptional loss....
Compare with FY 16 295.96
30× jump when compared to avg income...

But I''m going to apply on Monday itself..& I intend to hold it for next 10 yrs. ....

Fair value of l&t info. is 550 types. Market may punished at listing.

Ok ...kuch to hissab kro khemkaji???
Chalo 650 kehte to maan bhi lete..but 550..!!

How can managment increase an exceptional income ??.. Plz explain?...

Okay...got ur point very finely..growth investor sir..thanks....could u plz post last 5 yr other income??.. Thanks ...

All IT companies worth their name hedge their forex exposure through a variety of hedging instruments. All investments and unrealized hedges are marked to market on Balance date and resultant profits or losses are transferred to P&L. There is no window dressing in this as suggested by some board members. This is as per current accounting standards of ICAI. Only an effective treasury of an IT company can forecast and do proper hedges for profitable deployment.

EPS is just a lollipop. Go WITH NAV