L&T Technology Services’ Q4 net rises 5.5% to Rs 263.2 crore

L&T Technology Services (LTTS), a subsidiary of Larsen & Toubro, posted a 5.45% sequential rise in consolidated net profit at Rs 263.2 crore during the January-March quarter on the back of broad-based growth across sectors.

A consensus estimate of Bloomberg analysts was expecting the firm to post a net profit of Rs 260.6 crore for the quarter.

During the quarter, the firm’s total income rose 4.26% to Rs 1,798 crore from Rs 1,724.5 crore posted in the preceding quarter, LTTS said in a statement.

gIt was a fairly broad-based growth that we were able to get, with our plant engineering growing by 26%, transportation by 23%, industry products by 21%, telecom by 15% and medical by 15%. The deal pipeline during this year and quarter were highest-ever, which also added to growth,” LTTS chief executive officer and managing director Amit Chadha said.

During the quarter, revenues from operations rose 4.06% to Rs 1,756.1 crore from Rs 1,687.5 crore posted in the December quarter.

Revenues from digital and leading-edge technologies stood at 57% during the quarter. The Ebit margins rose 200 basis points to 18.6%.

At the end of the March quarter, LTTS patents portfolio stood at 868, out of which 605 were co-authored with its customers. As of March end, the company had a total employee strength of 20,861.

LTTS also won a multi-year $100-million plus electric air mobility deal from Jaunt Air Mobility, an aerospace firm headquartered in Texas, US. As part of the contract, it will open an engineering and R&D centre in Québec province for the electric aircraft manufacturer.

gDeal bookings continue to be strong with a total of six deals more than $10 million won in the fourth quarter, that includes a $100 million plus deal in Electric Autonomous & Connected Vehicle (EACV) and another $25 million plus deal. We see a healthy deal pipeline and demand environment across segments. Our FY23 guidance is for a dollar revenue growth of 13.5-15.5%,” Chadha said.

gThis deal is a milestone for team LTTS in view of the tremendous opportunities opening up in Urban Air Mobility (UAM) and drone services, which are emerging as alternatives to the increasingly congested on-ground mobility in cities,” he added.