L&T Infotech To Boost Hiring In U.S. Amid Visa Curbs

Larsen & Toubro Infotech Ltd. will increase its local hiring in the U.S. amid curbs by the Donald Trump administration on H-1B visas, which are largely availed by information technology companies to send programmers for on-site jobs.

The company, which earns more than two-thirds of its revenue from North America, has increased its local hiring in the U.S. over the last 12 months, Sanjay Jalona, managing director and chief executive officer of L&T Infotech, told BloombergQuint in an interview.

Visa curbs in the U.S. are expected to increase costs for Indian IT companies as it will force them to hire locals at higher salaries, hurting margins.

L&T Infotech, however, expects to maintain its operating margins (earnings before interest, tax margins) in the range of 20-21 percent in the ongoing financial year. That compares with 19.5 percent in the quarter ended March, a jump of 60 basis points over the previous three months.

The company’s net profit in the March quarter beat estimates, growing 2.6 percent to Rs 254.5 crore over the previous three months. Revenue too rose more than expected at 0.6 percent to Rs 1,677.2 crore. In dollar terms, revenue grew 3.6 percent against analyst expectations of around 4 percent decline.

The company had 261 clients as of March and targets to add another 35-50 in the ongoing financial year.

L&T Infotech rechristened its brand as LTI, according to a media statement. The board recommended a final dividend of Rs 9.7 per share, taking its total payout in 2016-17 to Rs 165 crore approximately.