L&T Technology Services Q3 profit jumps 34% on wider profit margins

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L&T Technology Services (LTTS) on Tuesday announced a 34% jump in net profit for the December quarter to Rs 248.8 crore, mainly due to profit margin expansion.

Operating revenue rose to Rs 1,687.5 crore from Rs 1,400 crore a year ago.

Managing Director and CEO, Amit Chadha, told PTI that LTTS is confident of achieving 19-20% revenue growth for 2021-2022, driven by its ability to sustain the aspiration of to achieve revenue growth of more than 4% in the quarter. compared to the previous September quarter.

The company’s operating profit margin rose 3.40 percentage points to 18.6%, despite increased hiring.

Chadha said profit margins have widened as a result of improved performance in its key verticals, including telecommunications, health technology and engineering services, more than 1,100 freshmen hired over the course of of the first two quarters of the fiscal year after training and automation.

The company, which has centers in Bengaluru and Vadodara, hired 3,000 interns in the first three quarters of FY22, including 1,900 in October-December.

New hires will decline in the last quarter of the fiscal year, but increase in the first two quarters of 2022-23, Chadha said, confident that the numbers for the first three quarters of FY23 will be comparable to those of the exercise 22.

Chadha said the company has visibility into business performance, which also makes him confident about hiring in the future.

Currently, it has 20,118 employees and attrition has increased slightly to 17.5%. Chadha said attrition will decrease in the coming quarters.

The company also announced a $45 million, 5-year contract with an electric vehicle manufacturer, to which it will dedicate 300 people at its center in Krakow, Poland.

Chadha said the new win brings the total upcoming EV (electric vehicle) industry deals to $90 million for FY22 so far, which is quite significant for the service industry. engineering.

Chadha said the company had invested in the EV up front, which includes a lab in Bengaluru, a partnership with a UK university and also facilities in the US, allowing it to win contracts without compromising the profit margins.

The company had cash and cash equivalent of Rs 2,100 crore as of December 31, 2021. Its board of directors announced an interim dividend of Rs 10 per share. Before the announcement of the results, the certificate lost 2.73% to close at Rs 5,421.45 on the BSE against a correction of 0.90% on the benchmark.

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