L&T Technology Services rallies 14% on strong Q1 results

The stock rallied 14% to Rs 1,485 on the BSE in early morning trade after the company reported more than doubled net profit at Rs 1,981 million in June quarter.

Shares of L&T Technology Services (LTTS) have rallied 14% to Rs 1,485 per share on the BSE in early morning trade after the company reported a more-than-double net profit of Rs 1,981 million in June quarter (Q1FY19). The L&T group company had profit of Rs 980 million in the year ago quarter.

The revenue during the quarter under review grew 40% at Rs 11.52 billion against Rs 8.23 billion in the corresponding quarter of previous fiscal. On sequential basis, revenue and net profit increased by 9.2% and 24%, respectively.

In US dollar terms, revenue stood at $169 million; growth of 5.6% QoQ in constant currency, 32% YoY, LTTS said in a press release.

EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved 170 bps at 17% from 15.3% in previous year quarter.

During the first quarter, LTTS won five multi-million dollar deals across process industry, telecom & hi-tech, industrial products and transportation.

“We had a strong first quarter with 5.6% sequential revenue growth that was broad based. Process Industry, a key differentiator for LTTS has come back as a growth engine with double-digit sequential growth in the quarter. The demand environment remains healthy and we are seeing clients prioritizing spending on digital engineering to gain the competitive edge and achieve faster time to market,” said Dr Keshab Panda, CEO & Managing Director, LTTS.

LTTS is a subsidiary of Larsen & Toubro (L&T) focused on Engineering and R&D (ER&D) services.

At 10:42 am; LTTS was trading 11% higher at Rs 1,447 on the BSE, as compared to 0.44% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 466,135 equity shares changed hands on the BSE and NSE so far.