LTTS begins FY19 with 101% profit growth, 40% revenue growth at Rs 1.97 bn

EBITDA for the quarter was at Rs 1,961 million while EBITDA margin at 17% up 16% sequentially and 56 per cent over the year

Pure play engineering services company L&T Technology Services Limited (LTTS) posted a net profit at Rs 1.97 billion growth of 24% QoQ, 101% YoY.

Reported revenue stood at RS 11,522 million; growing  9.2% sequentially and 40.1% over the year. Profits included a RS 470 million payout received by the company in the quarter.

Revenues from digital & leading-edge technologies increased to 31% of the overall business and grew 79% YoY; said Dr Keshab Panda, CEO & Managing Director, L&T Technology Services Limited.

EBITDA for the quarter was at Rs1,961 million while EBITDA margin at 17.0 per cent up 16 per cent sequentially and 56 per cent over the year.

During the quarter two clients have crossed $50 million in annual billing. On a YoY basis, LTTS has increased its $10 million clients by 2 and its $5 million clients by 5. Dr Panda attributed the large deals to very specific client mining that the company has been focusing on. Clients are turning towards value addition digital projects as well as expanding towards new geographies and technologies.

Segmentwise, transportation and telecom& hi-tech have grown the fastest. The management said that huge traction received from semiconductor and chip design clients has pushed this growth.

At the end of the first quarter LTTS; employee strength stood at 13,081, a net addition of 774 during the quarter.

" We're keener on hiring young blood as compared to lateral hires. We've also been hiring in other geographies, " he said.

Revenue share of other geographies has grown at a faster rate than North America which the management attributed towards a lot of existing clients expanding the business to new geographies.

Dr Panda added that while they have successfully monetized platform solutions, they're still identifying means to monetize their large holding of almost 340 patents and will take a few more quarters to chalk out the plan.

" It's important to understand that we're not an IT company and our revenue cycles are different from them.  A pure play engineering company we've created a new category of large deals through domain expertise and will continue on the path," he said.