Management Teaching Case

Larsen & Toubro Infotech’s Hostile Bid for Emerging Economies Cases Journal
1–10
2020 IIM, Rohtak
Mindtree Ltd.: Much Ado About Nothing! Reprints and permissions:
in.sagepub.com/journals-permissions-india
A Teaching Case DOI: 10.1177/2516604220920753
journals.sagepub.com/home/eec

Janki Mistry1

Abstract
This article tries to understand and analyse the recent acquisition of Mindtree Ltd. by the corporate conglomerate giant Larsen &
Toubro (L&T). L&T Infotech (LTI), which looks after the information technology (IT) business of the L&T group made a hostile bid for
Mindtree Ltd., one of India’s leading and fastest growing infotech companies in March 2019. The case goes on to analyse the deal and
delves into the reasons for the deal turning hostile. The objective of the case study is to understand the concept of hostile takeovers
and the business environment that augur acquisitions.
The second part of the article tries to focus on anti-takeover tactics, which the company adopts to avoid the takeover attempt.
Here, Mindtree’s decision of share buyback, immediately after L&T’s bid, has been examined. Two perspectives have been studied
here—one from the point of view of the promoters of Mindtree, and the other from the point of view of investors. There have been
certain very interesting and jocular exchanges of words between the promoters of Mindtree and LTI1 during the whole phase of takeo-
ver, which put the focus on the human element in acquisitions.
The business environment and industry analysis have been conducted to understand the nature and circumstances of the deal.
Legalities of the acquisition and dominant player misuse have also been examined.
LTI’s take on the acquisition was very clear. For them, it was a pure business deal. They were on the path for fast growth, which
Mindtree would help them achieve. Certain sectors such as Retail, Consumer Packaged goods, Media and Technology are underachieved
for LTI where Mindtree has a formidable presence. Mindtree would help LTI explore geographies in Europe that so far were unexplored.
However, for the promoters of Mindtree, this bid for takeover became an emotional issue. It all started when one of the non-
executive directors of Mindtree itself—V. G. Siddharth—came up to LTI and offered his shareholding of 21 per cent in Mindtree. LTI
grabbed this offer and went on to announce that it would acquire a total of about 60 per cent in the company, which made the other
promoters very uncomfortable. There was a lot of resistance from some of the Mindtree promoters, and certain hasty announcements
and statements in the media were also made. This interesting interlude between the two companies brought a lot of attention to the
acquisition and left the investors in a state of confusion.
The main objective of the case will be to analyse and teach the different corporate actions which took place and the strategic deci-
sions that were taken during the entire interaction between the two companies.
This case would address teaching objectives for the topics such as hostile takeovers; share buybacks as a new approach to anti-
takeover defence; political, legal and industrial analysis relevant to corporate restructuring decisions; and Hubris and Managerialism. A
separate teaching perspective on Corporate Business Communication has also been explored.

Keywords
Mindtree, L&T Infotech, acquisition, share buyback, Information Technology, L&T Infotech’s Acquisition of Mindtree-Much ado about
nothing!

It all started when the non-executive director of Mindtree
and founder-promoter of Coffee Day Enterprises V. G.
Siddharth came out in the open to sell off his close to 21
per cent stake in Mindtree. The total shareholding owned
by V. G. Siddharth individually, comprised of 5.469
million shares (3.3%), and the 17.4 million shares
(10.63%) were held by his company Coffee Day
Enterprises. Another company called Coffee Day Trading
Corporation held 10.5 million shares (6.4%) of the
Information Technology (IT) company Mindtree. V. G.
Siddharth started investing in Mindtree in 1999 while it
was still a struggling IT2 Start-up.
1 Assistant Professor, Department of Business and Industrial Management,
Veer Narmad South Gujarat University, Surat, India.
Corresponding author:
Janki Mistry, Assistant Professor, Department of Business and Industrial
Management, Veer Narmad South Gujarat University, Surat, Gujarat
395007, India.
E-mails: jdmistry@vnsgu.ac.in; janki.mistry@gmail.com

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2
Other promoters of Mindtree owned 13.32 per cent
shares in the company.
Siddharth3 approached L&T in March 2019 and offered
his shareholding in Mindtree. L&T took to the offer and
bought out his stake on 18 March 2019. In the same month,
L&T declared an open offer to the shareholders to buy a
stake of another 26 per cent in Mindtree and then further
increasing it to 51 per cent. In that event, the present
management of Mindtree would lose control of the company.
The current management/promoters of Mindtree were
extremely resistant to the deal.
Mindtree was incorporated by ten IT professionals from
different companies such as Wipro, Cambridge Technology
Partners and Lucent Technologies who all had a common
passion for technology and entrepreneurship. The
brainchild of Krishnakumar Natarajan (KK) and Subroto
Baghchi was initially set up as a tech company with
Ecommerce in its centre. Later on, as the company started
taking shape, other like-minded people, namely N. S.
Parthasarthy, Kalyan Banerjee, Scott Staples, Kamran and
Rostow Ravanan joined the bandwagon. Natarajan had
been associated with Wipro from 1982 to 1999 in various
positions wherein he started and grew the Ecommerce
division. When Mindtree was set up in August 1999, he
played a key role in building the organization and setting
up the US business. He, later on, drove the company’s
expansion into Europe, Asia Pacific and the Middle East.
This international diversification made a big difference in
building a risk-resilient company and a diverse client
profile. KK4 was the executive chairman of Mindtree when
Larsen & Toubro Infotech (LTI) made the hostile bid.
Baghchi had previously worked for Wipro and Lucent.
Baghchi who later took on the role of a non-executive
director in the company had played a key leadership role as
the Chief Operating Officer during the tough years between
1999 and 2007, spanning the economic slowdown in the
USA and into the crisis after 9/11. At a time when most of
the new IT companies had to shut shop, Baghchi moved to
the USA, in order to deal with the crisis, which helped the
leadership team stay together during the difficult phase.
Baghchi was instrumental in articulating Mindtree’s
Vision, Mission and Values and led areas such as leadership
development, marketing and knowledge management
initiatives, which differentiated the company from other
technology companies in the field.
In a desperate but bold attempt to stop the acquisition,
on 20 March 2019, the Mindtree board announced a share
repurchase after L&T’s open market bid to buy shares.
However, even if it were not successful in stalling the
takeover, it would definitely raise the offer price for the
acquirer.
Mindtree had a cash reserve of `1.62 billion and
investments of about `8.11 billion, which could be used for
the buyback.
Emerging Economies Cases Journal
Mindtree
The acquisition of Mindtree would help LTI to significantly
expand its presence, with operations in key markets across
the world. Mindtree had a strong presence in the technology
and media industries, which were all potentially new areas
of expansion for LTI. Mindtree catered to numerous
industries and provided customized IT solutions for
industries such as Banking, Insurance, Retail, Consumer
Technologies, Education, Manufacturing, Transportation
and Logistics, Media and Entertainment, Travel and
Hospitality and many more. The services of Mindtree
could be categorized into six parts, namely Digital Services,
Operations, IT Consulting Services, Engineering R&D,
Enterprise Software and Products. In the year 1999, when
ten IT professionals came together to form this company,
part of the company was held through a company in
Mauritius. It was initially funded by Venture Capital as
most IT firms are. In 2007, Mindtree came out with an
Initial Public Offering (IPO) and was publicly listed on the
Bombay Stock Exchange BSE and National Stock
Exchange (NSE). Its IPO was oversubscribed by 100 times.
The company spread out in 17 countries had more than 40
offices. At the time of the announcement of the bid, the
company had more than 20,000 employees of which 31 per
cent were women. The employees represented 65
nationalities and 93 per cent of the workforce comprised
software professionals. Mindtree had the reputation of a
fast-growing company in the industry. Its revenues
increased by 28.53 per cent, and profit before tax increased
by 32.93 per cent in 2019 from the previous year. In the
year 2018–2019, Mindtree posted an annual revenue of
US$1 billion (Table A1 and A2).
Larson &Toubro Infotech
In 1997, LTI resumed operations as a subsidiary of L&T.
Since then, its journey had been eventful and fast with a
slew of acquisitions for augmenting its growth story. When
it announced the bid for Mindtree, it had a presence in
more than 30 countries and had about 28,000 employees. It
functions across several service verticals namely Cloud
services, consulting, Cloud-based Infrastructure services,
Assurance, Cyber Defense Resiliency Services and
Applications Management. Digital has emerged as the
universal change agent, trying to address new challenges in
the business world. LTI’s business philosophy was to
improve business outcomes with the use of Artificial
Intelligence (AI), Automation and Data Analytics. Their
Digital services portfolio was one of the most advanced in
the industry with major focus on Internet of Things, AI,
Digital Integration and Intelligent Robotics Programme
Automation.
Mistry 3
Industry
The IT industry in India had revenues of US$181 billion as
of March 2019 and was expected to grow at 7–9 per cent in
the next few years. Exports formed more than 80 per cent
of revenues and aggregated at around US$137 billion. The
industry is expected to reach a forecasted US$350 billion
by the year 2025. The domestic industry, which generated
revenues of US$28–29 billion, was expected to grow at the
rate of 10–12 per cent in the coming few years. Among all
the segments of the IT sector, the Digital technologies
sector was growing at 30 per cent per annum. The share of
the Digital technologies segment is expected to become a
staggering 38 per cent by the year 2025. Foreign direct
investments to the tune of US$37 billion has come to the
Indian IT sector between the years 2000 and 2019 as per
the data released by the Department for Promotion of
Industry and International Trade (DPIIT).
Some of the major initiatives taken by the government
to promote IT and information technology–enabled
services (ITeS) sector in India after the year 2014:
The government identified IT as one of the 12 champion
service sectors for which an action plan would be
developed. Also, the government set up a `50 billion
(US$745.82 million) fund for realizing the potential of
these champion service sectors.
As a part of Union Budget 2018–2019, National Institute
for Transforming India (NITI) Aayog would set up a
national-level programme that will enable efforts in AI and
would help in leveraging AI technology for development
works in the country.
In the Interim Budget 2019–2020, the Government of
India announced plans to launch a national programme on
artificial intelligence (AI) and setting up of a National AI
portal.
National Policy on Software Products–2019 was passed
by the Union Cabinet to develop India as a software product
nation.
Looking to the industry scenario, and the environment
for doing business, it was natural for any ambitious IT
company like LTI to expand through acquisitions.
Reasons for the Acquisition
In the past couple of years, LTI had been on a fast growth
spree. In the years 2016 and 2017, the company made some
very focused and pure play acquisitions taking on the
inorganic growth path. In 2016, LTI acquired AugmentIQ
Data Sciences that specialized in Big Data. In 2017, it
acquired Syncordis SA for core banking implementation.
In January 2019, LTI acquired a US-based company called
Ruletronics for making a big entry in the Pega
Implementation space. Mindtree’s portfolio has strong
capabilities and clientele that is complementary to LTI.
Mindtree’s strong presence in the Media and Technology
industries was the main attraction for L&T where it had yet
to make a mark (Figure A1 and A2). Mindtree’s presence in
industries such as consumer packaged goods, retail, travel
and hospitality could pave the way for a synergistic
equation with the LTI portfolio.
LTI had a good presence in the USA but not in Europe.
Acquisition of Mindtree would give them an entry into the
European markets.
Both companies were basically headquartered in India,
and hence integration with respect to ironing out cultural
differences would also be less challenging.
The Big Coup
Finally, after a lot of hostility and war of words, Mindtree
redacted its plan of share buyback and took a sort of
conciliatory route. However, the battle was far from over.
KK said that he was not so much concerned about the
takeover attempt; rather, he was more concerned about the
timing of LTI’s offer.
He said in an interview with a reputed newspaper that:
"Mindtree did all the early work, suffered low margins for
years and now it’s poised to clock top-shelf growth in the next
couple of years. We tilled the land, fertilised it, put the right
seeds, and now it may give us a great yield. Now if a tornado
spoils it, it’s not the right thing for shareholders.
The focus now is on safeguarding the interests of employees
and customers."
This emotional outburst surprised many in the industry. He,
however, underlined the importance of remaining optimistic
and practical; saying that crying over the past is pointless.
LTI bought out Siddhartha’s shares for `980 per share,
and it purchased another 13 per cent from the open market.
Its original plan was to ultimately to own about 66 per cent
of Mindtree.
On 2 July 2019, L&T had acquired 60 per cent stake in
Mindtree and became the promoter of the company.
The first ever hostile takeover attempt in India was
made by a non-resident Indian (NRI)—Swaraj Paul,
somewhere in the 1980s for companies DCM Ltd. and
Escorts Ltd., wherein the promoters held 10 per cent and 5
per cent shares and voting rights, respectively. Although
Paul was not successful in acquiring the companies, the
Indian Law and regulatory authorities as well as the
corporate world realized that proper regulation for
takeovers of companies was needed. After the economic
reforms of 1991, the need was further accentuated due to
privatization and globalization and the arrival of
multinationals in the country. The Securities and Exchange
Board (SEBI) was formed in 1992, and thereafter a proper
guideline for takeovers was set out.
How the acquisition was executed:
31 per cent was acquired in an open offer worth `50
billion.
4 Emerging Economies Cases Journal

15 per cent was acquired through an open market
purchase.
20.32 per cent stake of V. G. Siddharth worth about
`32 billion was acquired.
The total value of the deal was pegged at around `100.7
billion at `980 per share. This deal has been tagged as the first
hostile takeover in the Indian IT space. LTI declared that it
intended to have a total stake of 66.32 per cent in the company
and, on 6 June 2019, increased its stake to 28.90 per cent.
On 12 June 2019, amidst all the drama and hostility between
both the companies, a report of the independent directors of
Mindtree came out. This report claimed that the offer of `980
per share made by LTI was a fair offer. This again was a thumbs
up sign for LTI that had maintained that its offer was anything
but hostile and Mr A. M. Naik, Group Chairman of L&T, even
said that the directors of Mindtree were in fact perpetrating
hostility and not the other way around.
Initially, LTI had offered a price of `1,150 per share with
a caveat that the management cooperated in the acquisition.
But since the management did not take kindly to the deal,
LTI had had to take the market route (Table A3 and A4).
Share price movement of Mindtree Ltd. and LTI Ltd.
between the date of purchase of V. G. Siddhartha’s shares,
announcement of acquisition and the date of final acquisition.
Student assignment questions:
1. What are the factors that LTI would have considered
before the acquisition of Mindtree Ltd.?
2. Why is this acquisition referred to as ‘Hostile’? How
is it different from a tender offer? When does a tender
offer convert to a ‘Bear Hug’?
3. Why did Mindtree Ltd. decide to declare a Share
Buyback in March 2019? What is a Share Buyback
and what is its purpose? How was Mindtree’s
approach to and purpose for Share Buyback different?
4. What could have been the strategies that Mindtree
might have used to avoid the acquisition?
5. Why were not the current managers of Mindtree
willing to sell to a company like LTI. (Answer from
the point of view of Hubris or Managerialism.) What
are your ideas regarding the cultural amalgamation
of the two companies after Acquisition?
Declaration of Conflicting Interests
The author declared no potential conflicts of interest with respect
to the research, authorship and/or publication of this article.
Funding
The author received no financial support for the research,
authorship and/or publication of this article
Notes
1. L&T Infotech shall henceforth be referred to as LTI in the
case.
2. The acronym for information technology.
3. V. G. Siddharth will henceforth be referred to as Siddharth or
VG in the case.
4. Krishnakumar Natarajan will henceforth be referred to as KK
in the article.
ORCID iD
Janki Mistry https://0000-0001-5863-440X

Appendix A
Table A1. Financial Results of Mindtree Ltd. Before the Acquisition

March 2019 March 2018 March 2017 March 2016 March 2015
Balance Sheet of Mindtree (in ` crore) 12 months 12 months 12 months 12 months 12 months
Equities and liabilities
Shareholder’s funds
Equity share capital 164.20 163.90 168.00 167.80 83.70
Total share capital 164.20 163.90 168.00 167.80 83.70
Reserves and surplus 3,141.90 2,577.50 2,409.10 2,247.10 1,928.70
Total reserves and surplus 3,141.90 2,577.50 2,409.10 2,247.10 1,928.70
Total shareholders funds 3,306.10 2,741.40 2,577.10 2,414.90 2,012.40
Minority interest 0.00 0.00 0.00 0.00 0.00
Non-current liabilities
Long-term borrowings 0.50 0.90 1.30 1.80 2.30
Deferred tax liabilities {Net} 0.00 0.00 0.00 0.00 0.00
Other long-term liabilities 17.40 8.50 30.10 85.80 33.40
Long-term provisions 0.00 0.00 0.00 0.00 0.00
(Table A1 Continued)
Mistry 5

(Table A1 Continued)

March 2019 March 2018 March 2017 March 2016 March 2015
Balance Sheet of Mindtree (in ` crore) 12 months 12 months 12 months 12 months 12 months
Total non-current liabilities 17.90 9.40 31.40 87.60 35.70
Current liabilities
Short-term borrowings 0.00 300.00 97.80 41.50 0.00
Trade payables 213.10 171.00 165.10 189.00 53.60
Other current liabilities 502.00 392.90 408.70 415.00 346.50
Short-term provisions 139.90 121.80 110.50 128.90 206.30
Total current liabilities 855.00 985.70 782.10 774.40 606.40
Total capital and liabilities 4,179.00 3,736.50 3,390.60 3,276.90 2,654.90
Assets
Non-current assets
Tangible assets 375.70 350.90 380.90 417.30 451.30
Intangible assets 118.00 152.00 194.10 263.20 12.00
Capital work-in-progress 29.70 9.20 19.20 23.20 35.40
Fixed assets 523.40 512.10 594.20 703.70 498.70
Non-current investments 120.00 5.80 5.80 6.20 0.80
Deferred tax assets {Net} 38.80 31.80 62.40 40.90 44.90
Long-term loans and advances 67.50 75.10 66.70 65.50 65.40
Other non-current assets 188.90 154.70 153.50 151.70 100.30
Total non-current assets 1,411.80 1,233.40 1,329.60 1,449.50 802.30
Current assets
Current investments 683.60 720.60 586.90 226.60 534.30
Inventories 0.00 0.00 0.00 0.00 0.00
Trade receivables 1,335.60 1,015.50 896.20 972.80 696.30
Cash and cash equivalents 256.20 328.90 250.80 233.20 376.30
Short-term loans and advances 12.30 1.70 1.20 3.80 83.60
Other current assets 479.50 436.40 325.90 391.00 162.10
Total current assets 2,767.20 2,503.10 2,061.00 1,827.40 1,852.60
Total assets 4,179.00 3,736.50 3,390.60 3,276.90 2,654.90
Other additional information
Contingent liabilities, commitments
Contingent liabilities 376.90 159.60 138.80 176.30 142.20
Bonus details
Bonus equity share capital 147.37 147.37 151.06 151.06 67.16
Non-current investments
Non-current investments quoted market value 119.20 5.00 5.00 5.00 0.00
Non-current investments unquoted book value 0.80 0.80 0.80 1.20 0.90
Current investments
Current investments quoted market value 590.80 621.80 525.90 201.60 479.00
Current investments unquoted book value 92.80 98.80 61.00 25.00 70.00
Source:  Dion Global Solutions Limited.
6 Emerging Economies Cases Journal

Table A2. Profit & Loss Account of Mindtree Ltd

March 2019 March 2018 March 2017 March 2016 March 2015
 Profit & Loss Account of Mindtree (in ` crore) 12 months 12 months 12 months 12 months 12 months
Income
Revenue from operations {GROSS} 7,021.50 5,462.80 5,236.40 4,673.00 3,561.90
Less: Excise/sevice tax/other levies 0.00 0.00 0.00 0.00 0.00
Revenue from operations {NET} 7,021.50 5,462.80 5,236.40 4,673.00 3,561.90
Total operating revenues 7,021.50 5,462.80 5,236.40 4,673.00 3,561.90
Other income 89.30 190.20 55.30 83.90 83.50
Total revenue 7,110.80 5,653.00 5,291.70 4,756.90 3,645.40
Expenses
Cost of materials consumed 0.00 0.00 0.00 0.00 0.00
Operating and direct expenses 0.00 0.00 0.00 0.00 0.00
Employee benefit expenses 4,421.20 3,564.10 3,412.50 2,799.10 2,074.70
Finance costs 2.90 16.90 19.10 16.00 0.10
Depreciation and amortization expenses 164.10 171.50 185.80 165.80 101.80
Other expenses 1,535.80 1,158.20 1,119.40 1,052.90 778.00
Total expenses 6,124.00 4,910.70 4,736.80 4,033.80 2,954.60
Profit/loss before exceptional, extraordinary items and 986.80 742.30 554.90 723.10 690.80
tax
Exceptional items 0.00 0.00 0.00 0.00 0.00
Profit/loss before tax 986.80 742.30 554.90 723.10 690.80
Tax expenses-continued operations
Current tax 245.60 155.50 157.70 190.30 159.20
Less: MAT credit entitlement 0.00 0.00 0.00 0.00 0.00
Deferred tax –12.90 16.70 –21.40 –19.70 –4.70
Other direct taxes 0.00 0.00 0.00 0.00 0.00
Total tax expenses 232.70 172.20 136.30 170.60 154.50
Profit/loss after tax and before extraordinary items 754.10 570.10 418.60 552.50 536.30
Profit/loss from continuing operations 754.10 570.10 418.60 552.50 536.30
Profit/loss for the period 754.10 570.10 418.60 552.50 536.30
Minority interest 0.00 0.00 0.00 0.00 0.00
Consolidated profit/loss after mi and associates 754.10 570.10 418.60 552.50 536.30
Other additional information
Earnings per share
Basic EPS (`.) 46.00 34.00 25.00 33.00 64.00
Diluted EPS (`) 46.00 34.00 25.00 33.00 64.00
Dividend and dividend percentage
Equity share dividend 180.50 148.80 167.90 209.50 142.40
Tax on dividend 37.80 25.40 32.60 39.40 29.10
Source:  Dion Global Solutions Limited.
Mistry 7

Table A3. Financial Results of L&T Infotech Ltd

Balance Sheet of Larsen & Toubro March 2019 March 2018 March 2017 March 2016 March 2015
Infotech (in ` crore)  12 months 12 months 12 months 12 months 12 months
Equities and liabilities
Shareholder’s funds
Equity share capital 17.40 17.20 17.10 17.00 16.13
Total share capital 17.40 17.20 17.10 17.00 16.13
Reserves and surplus 4,876.40 3,842.60 3,127.20 2,107.50 2,010.22
Total reserves and surplus 4,876.40 3,842.60 3,127.20 2,107.50 2,010.22
Total shareholders funds 4,893.80 3,859.80 3,144.30 2,124.50 2,026.35
Minority interest 0.80 1.30 0.80 0.50 0.39
Non-current liabilities
Long-term borrowings 0.00 0.00 0.00 0.00 13.89
Deferred tax liabilities {Net} 5.60 13.20 17.10 24.80 23.80
Other long-term liabilities 93.60 104.20 0.00 0.00 53.84
Long-term provisions 29.10 27.90 28.50 23.50 10.37
Total non-current liabilities 128.30 145.30 45.60 48.30 101.90
Current liabilities
Short-term borrowings 0.00 0.00 0.00 54.60 203.64
Trade payables 466.90 388.80 336.60 340.50 271.95
Other current liabilities 968.60 803.00 745.70 448.10 172.35
Short-term provisions 210.80 184.40 161.40 145.70 281.54
Total current liabilities 1,646.30 1,376.20 1,243.70 988.90 929.48
Total capital and liabilities 6,669.20 5,382.60 4,434.40 3,162.20 3,058.11
Assets
Non-current assets
Tangible assets 305.20 250.80 257.80 279.20 274.98
Intangible assets 130.00 153.50 184.80 260.60 408.45
Capital work-in-progress 3.20 1.00 0.90 0.70 5.33
Fixed ASSETS 446.70 411.10 443.90 559.30 708.61
Non-current investments 0.10 0.10 0.00 0.00 0.00
Deferred tax assets {Net} 154.50 192.10 143.40 221.30 1.03
Long-term loans and advances 47.30 38.70 31.10 0.00 243.98
Other non-current assets 355.80 270.10 388.00 263.50 0.00
Total non-current assets 1,499.10 1,188.40 1,105.70 1,141.90 953.62
Current assets
Current investments 1,740.20 1,264.30 940.60 42.90 103.55
Inventories 0.00 0.00 0.00 0.00 0.00
Trade receivables 1,826.30 1,396.20 1,169.70 1,166.10 1,244.57
Cash and cash equivalents 415.00 363.30 379.50 203.50 200.92
Short-term loans and advances 7.10 23.80 15.90 0.00 555.45
Other current assets 1,181.50 1,146.60 823.00 607.80 0.00
Total current assets 5,170.10 4,194.20 3,328.70 2,020.30 2,104.49
Total assets 6,669.20 5,382.60 4,434.40 3,162.20 3,058.11
(Table A3 Continued)
8 Emerging Economies Cases Journal

(Table A3 Continued)

Balance Sheet of Larsen & Toubro March 2019 March 2018 March 2017 March 2016 March 2015
Infotech (in ` crore)  12 months 12 months 12 months 12 months 12 months
Other additional information
Contingent liabilities, commitments
Contingent liabilities 255.30 602.90 577.80 748.70 687.98
Bonus details
Bonus equity share capital 0.00 0.00 0.00 0.00 0.00
Non-current investments
Non-current investments quoted market value 0.00 0.00 0.00 0.00 0.00
Non-current investments unquoted book value 0.10 0.10 0.00 0.00 0.00
Current investments
Current investments quoted market value 0.00 0.00 0.00 0.00 103.70
Current investments unquoted book value 1,740.20 1,264.30 940.60 42.90 0.00
Source: Dion Global Solutions Limited.

Table A4. Profit & Loss Account of LTI Ltd

Profit & Loss Account of Larsen & Toubro March 2019 March 2018 March 2017 March 2016 March 2015
Infotech (in ` crore)  12 months 12 months 12 months 12 months 12 months
Income
Revenue from operations {GROSS} 8,907.20 6,906.40 6,182.90 5,569.52 4,744.40
Less: Excise/sevice tax/other levies 0.00 0.00 0.00 0.00 0.00
Revenue from operations {NET} 8,907.20 6,906.40 6,182.90 5,569.52 4,744.40
Total operating revenues 8,907.20 6,906.40 6,182.90 5,569.52 4,744.40
Other income 329.00 525.40 198.30 338.61 88.78
Total revenue 9,236.20 7,431.80 6,381.20 5,908.13 4,833.18
Expenses
Cost of materials consumed 0.00 0.00 0.00 0.00 0.00
Operating and direct expenses 1,931.60 1,628.60 1,414.10 667.06 460.54
Changes in inventories of FG,WIP and stock-in 0.00 0.00 0.00 0.00 0.00
trade
Employee benefit expenses 5,128.70 4,134.80 3,597.50 3,383.84 2,806.47
Finance costs 4.30 13.80 3.20 10.36 10.42
Depreciation and amortization expenses 88.10 91.30 108.90 103.45 90.73
Other expenses 123.80 94.90 73.30 590.25 522.50
Total expenses 7,276.50 5,963.40 5,197.00 4,754.95 3,890.65
Profit/loss before exceptional, extraordinary 1,959.70 1,468.40 1,184.20 1,153.17 942.53
items and tax
Exceptional items 0.00 0.00 0.00 0.00 0.00
Profit/loss before tax 1,959.70 1,468.40 1,184.20 1,153.17 942.53
Tax expenses-continued operations
Current tax 447.60 333.00 293.40 162.71 160.28
Less: MAT credit entitlement 0.00 0.00 0.00 0.00 0.00
Deferred tax 37.00 –24.70 –46.80 52.33 9.29
Tax for earlier years 0.00 0.00 0.00 0.00 0.00
Total tax expenses 484.60 308.30 246.60 215.04 169.57
Mistry 9

Profit & Loss Account of Larsen & Toubro March 2019 March 2018 March 2017 March 2016 March 2015
Infotech (in ` crore)  12 months 12 months 12 months 12 months 12 months
Profit/loss after tax and before extraordinary 1,475.10 1,160.10 937.60 938.13 772.96
items
Profit/loss from continuing operations 1,475.10 1,160.10 937.60 938.13 773.60
Profit/loss for the period 1,475.10 1,160.10 937.60 938.13 773.60
Other additional information
Earnings per share
Basic EPS (`) 85.31 67.74 55.11 57.23 239.68
Diluted EPS (`) 84.11 66.23 53.89 57.10 229.53
Value of imported and indigenious raw materials
stores, spares and loose tools
Imported raw materials 0.00 0.00 0.00 0.00 0.00
Indigenous raw materials 0.00 0.00 0.00 0.00 0.00
Stores, spares and loose tools
Imported stores and spares 0.00 0.00 0.00 0.00 0.00
Indigenous stores and spares 0.00 0.00 0.00 0.00 0.00
Dividend and dividend percentage
Equity share dividend 452.30 313.90 170.00 590.88 480.53
Tax on dividend 84.20 50.00 27.80 110.67 90.63
Equity dividend rate (%) 2,800.00 2,150.00 1,655.00 3,525.00 2,980.00
Source:  Dion Global Solutions Limited.

Figure A1. Mindtree Closing Price

Source: The author.
10 Emerging Economies Cases Journal

Figure A2. LTI Closing Price

Source: The author.