LTIMindtree secures order from UK-based water utility firm; stock down 1%

LTIMindtree, the merged entity of Larsen & Toubro Infotech (LTI) and Mindtree, on Thursday said it has bagged a contract from Yorkshire Water, a leading U.K. utilities company, to modernise operations across its clean water, waste water, and asset management businesses. Despite this positive development, shares of LTIMindtree, the country's fifth-largest IT firm by market cap, declined as much as 1.5% to hit an intraday low of ₹4,355 on the BSE.

On Thursday, LTIMindtree share price opened a tad higher at ₹4,425.05, against the previous closing price of ₹4,422.85 on the BSE. Extending opening gains, the stock rose over 1% to hit a high of ₹4,472.85, while it soon slipped into negative terrain, falling as much as 1.5% to hit an intraday low of ₹4,355. At the time of reporting, the counter traded at ₹4,379.90, down 1%, while the market capitalisation stood at ₹1.29 lakh crore.  The IT heavyweight touched a 52-week high of ₹7,595.25 on January 4, 2022, while it touched a 52-week low of ₹3,733.25 on May 26, 2022.

The share price has fallen over nearly 13% since the listing of the merged entity on December 5. LTIMindtree made its market debut on December 5 after 12 crore equity shares of ₹1 each were listed and permitted for trading on the exchange following the merger of erstwhile Mindtree, which was delisted on November 23, with LTI. Following the amalgamation, LTIMindtree has become the country's fifth-largest IT services provider by market cap after Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. The parent company, Larsen & Toubro (L&T), holds a 68.73% stake in the new entity.

LTIMindtree in an exchange filing said today that it has been selected as a transformation partner by Yorkshire Water to modernise operations across its clean water, waste water, and asset management businesses. Yorkshire Water is the ninth largest water utility in the world and provides water and wastewater services to 5.2 million customers across Yorkshire.

“We are excited to partner with Yorkshire Water in helping millions of customers get access to clean water and safe sanitation, which are the cornerstones of human health, well-being, and development,” said Sudhir Chaturvedi, President and Executive Board Member, LTIMindtree.

As part of the deal, LTIMindtree will help migrate Yorkshire Water’ core business systems to the SAP S/4HANA platform covering a wide range of areas such as work and asset management, complex scheduling, materials management, inventory management, health, and safety. “By automating and simplifying processes, consolidating data, and modernising core systems using intelligent technologies, LTIMindtree will enable Yorkshire Water to boost operational efficiencies, augment capabilities, and enhance user experience,” the L&T Group company said in the filing.

Unified management of assets, workforce, and finances will allow Yorkshire Water to drive integrated planning and scheduling of work, and dynamic asset maintenance across the organization, it added.

“By blending our next-generation ERP expertise and extensive industry experience with the advanced end-to-end capabilities of SAP S/4HANA, we look forward to accelerating the digital transformation journey of this critical national infrastructure and helping Yorkshire Water deliver services tailored to customer needs,” said Chaturvedi.