The marine automation unit was divested as a part of the strategic program to unlock value.
Larsen & Toubro, an engineering, procurement and construction project company, through its wholly owned subsidiary, Larsen & Toubro International FZE, has signed definitive agreements with Rolls-Royce's Power Systems division, a global player in power systems for the divestment of its UK-based integrated marine automation solutions provider Servowatch Systems.A leading supplier of advanced and innovative integrated ship control systems, Servowatch Systems has grown into an internationally recognized provider of Marine Automation platforms over the past eight years of L&T's ownership. The company headquartered in Heybridge, Essex, United Kingdom has 44 employees in the UK and India, who deliver integrated marine automation solutions for navies, commercial vessels and large yachts.
Servowatch Systems revenue during FY 2019-20 was Rs 50.42 crore, constituting around 0.03% of consolidated revenue of L&T for the FY 2019-20. It reported a net worth of Rs -19.78 crore as on 31 March 2020.
Commenting on the divestment, S.N. Subrahmanyan, the chief executive officer (CEO) and managing director (MD) of Larsen & Toubro, has said that: "The divestment of Servowatch Systems is as per our stated goal of unlocking value within the existing business portfolio by divesting non-core units. L&T facilitated the business to develop an award-winning software platform for the latest generation of marine integrated platform management systems that are sold globally to many navies and commercial operators. We believe its partnership with Rolls-Royce and its product and solution brand MTU will pave the way for its further growth."
Shares of L&T fell 0.15% to Rs 1,115.05 on BSE.
On a consolidated basis, the company's net profit surged 115.2% to Rs 5,876.54 crore on 12.2% decline in net sales to Rs 31,034.74 crore in Q2 September 2020 over Q2 September 2019.
More From This Section
L&T is an Indian technology, engineering, construction, manufacturing and financial services conglomerate, with global operations.
Powered by Capital Market - Live News