L&T Technology Services Q2 performance registers surges over 19 pct YOY

L&T Technology Services Limited, a leading pure play engineering research and development services provider, marked it's first-ever results announcement after listing on the Indian stock exchanges with a 19.7 percent rise (YoY) in net profits at ?1.1 billion.

Revenues recorded stood at INR ?8.2 billion at a 6.6% (YoY) growth, and was up 2.5% on a sequential basis.

Key financials from the quarter include:

USD Revenue at $123 million - growth of 2.3 % QoQ, 3.5% YoY

EBITDA margins for the quarter at 19.0%, an improvement of 40 bps QoQ

Operating EBITDA at ?1562 million - growth of 4.8% QoQ, 27.5% YoY

Net profit up by ?1,119 million - growth of 3.5% QoQ, 19.7% YoY

L&T Technology Services won several multi-million contracts during the quarter across the semiconductor, hi-tech, automotive and industrial products verticals. North America contributed the most towards revenues at 62.3 % followed by Europe at 19.5 %. Contribution from the domestic market stood at 7.4%. In terms of industries, Transportation led the growth accounting for almost 33% of the revenues, while the Industrial Products vertical contributed 25.5% to sales during the period. As of the quarter end, the company's active client base is 216.

Dr. Keshab Panda, Chief Executive Officer & Managing Director, L&T Technology Services Ltd. said, "I am pleased to report a good growth quarter after listing on the Indian bourses, with revenues rising 3.2 percent sequentially. This is propelled by strong execution and enhanced operational efficiencies, resulting in improved profitability. The results are a testimony to the unique Smart products and service propositions offered by L&T Technology Services to its global clientele."

"Our focus on innovation engine has led to a robust patent portfolio of 174 patents, while cross pollination of technologies has created renewable energy storage up to 1 MW through stackable inverters. We have also strengthened and extended our home grown IoT platform UBIQWeise and i-BEMS solution through which we have achieved higher connectivity and data analytics for IoT and Industrial IOT applications," he said.

L&T Technology Services has been rated as an "Established and Expansive Leader" in the Internet of Things (IoT) services by engineering consultancy firm Zinnov. LTTS was also rated in the leadership category in Product Development Engineering and Sensor & Devices Engineering for IoT services by Zinnov.

The Company also strengthened its Industrial IoT ecosystem with a partnership with Microsoft Azure to help provide best in class solutions to its global customers, adding to existing alliances with technology leaders such as Intel, Dell, Redknee and the Indian Institute of Science, Bangalore.

The company declared an interim dividend of Rs. 3 /share, on face value of Rs. 2 each.