L&T Technology Services third quarter net profit falls 8.8% to Rs 186.1 cr

Larsen & Toubro Technology Services posted an 8.8 per cent decline in consolidated net profit

Larsen & Toubro Technology Services (LTTS) on Wednesday posted an 8.8 per cent decline in consolidated net profit to Rs 186.1 crore for the December 2020 quarter.

The company had registered a net profit of Rs 204.1 crore in the year-ago period, it said in a regulatory filing.

Its revenue fell 1.6 per cent to Rs 1,400.7 crore in the quarter under review from Rs 1,422.9 crore a year ago, it added.

On a sequential basis, the net profit was higher by 12.4 per cent from Rs 165.5 crore, while revenue increased 6.6 per cent from Rs 1,313.8 crore in the September 2020 quarter.

"Our Q3 results marked another quarter of resilient performance with growth in revenue, deal wins, operating margin and free cash flow. All five of our industry segments grew sequentially, while three segments - Industrial Products, Plant Engineering and Telecom & Hitech grew over 5 per cent," LTTS CEO and Managing Director Keshab Panda said.

Large deal bookings were the highest ever, helped by the marquee USD 100 million-plus deal the company signed in the Plant Engineering segment, he added.

"Deal wins were strong in the quarter with 7 deals having TCV of USD 10 million-plus which includes the USD 100 million-plus deal and 2 USD 15 million-plus deals. On the operational front, EBIT margin improved by 150 basis points sequentially while free cash flow generation was also strong," Panda said.

The deal pipeline is healthy across segments as customers prioritise business transformation to improve efficiency and productivity, he added.

"We are confident that the growth will continue to be broad-based. We raise our FY21 guidance - which is now for a revenue decline of about 6.5 per cent in USD terms," Panda said.

The company's revenue in US dollar terms declined 4.6 per cent year-on-year in the December quarter to USD 190.1 million, while it was up 6.8 per cent from the September quarter.

Its headcount stood at 16,069 at the end of December 2020 quarter. Its attrition was 10.7 per cent.

The Board has re-appointed Sudip Banerjee as an Independent Director for a term of five years with effect from January 21, 2021, up to January 20, 2026, subject to the approval of the shareholders.

The shareholders' approval will be obtained through postal Ballot for the appointment of directors, it said.