L&T Technology Services Q3 PAT rises 8% Q-o-Q to Rs 250 cr

L&T Technology Services (LTTS) reported 8.14% rise in consolidated net profit to Rs 249.60 crore on a 4.96% increase in revenue from operations to Rs 1,687.50 crore in Q3 FY22 over Q2 FY22.

On a year-on-year (Y-o-Y) basis, the company's net profit and revenue from operations have risen by 34% and 20% in Q3 FY22 as compared with Q3 FY21.

Consolidated EBITDA improved 5.2% to Rs 367.50 crore in Q3 FY22 from Rs 349.30 crore in Q2 FY22. EBITDA margin was at 21.8% as on 31 December 2021 as against 21.7% as on 30 September 2021.

In dollar terms, the company's revenue was at $225.1 million in Q3 FY22, up 3.6% Q-o-Q (quarter-on-quarter) and up 18.4% Y-o-Y. In constant currency terms, the revenue has increased by 4.2% Q-o-Q and 19.5% Y-o-Y. The company has maintained FY22 USD revenue growth guidance at 19-20%.

During the quarter, L&T Technology Services (LTTS) won a $45 million deal and a total of three deals with TCV of $10 million plus. Revenues from digital and leading-edge technologies stood at 56% during the quarter.

At the end of Q3 FY22, the patents portfolio of L&T Technology Services stood at 816, out of which 578 were co-authored with its customers and the rest were filed by LTTS. At the end of Q3 FY22, LTTS' employee strength stood at 20,118.

Meanwhile, the board has also declared an interim dividend of Rs 10 per equity share (record date on 27 January 2022). The interim dividend will be paid/ dispatched on or before 10 February 2022.

Amit Chadha, the chief executive officer (CEO) and managing director (MD) of L&T Technology Services (LTTS), said, "We sustained our performance trajectory with sequential growth of 4.2% in constant currency led by strong demand across segments. The deal conversations and pipeline in our six big bets - Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability - continues to see healthy improvement as our customers make steady progress on their long-term transformative journeys."

"We are expanding our EACV global presence with the addition of an engineering R&D center in Krakow, Poland that will strengthen our strategic partnership with European and Global clients. In line with our long-term growth prospects and strategy, we invested in hiring and onboarding a record 1,900 plus trainees leveraging our Global Engineering Academy that is focused on continuous training and upskilling. Despite the robust employee addition, we further improved our Operating margin to 18.6%, reflecting gains from investments in talent and innovation," he added.

In a separate announcement, L&T Technology Services announced that it has been awarded a deal worth $45 million from a U.S. based automotive Tier 1 company, to be its strategic engineering partner and provide engineering services for its Electric Vehicle (EV) product portfolio. Under the terms of the 5-year agreement, LTTS will work with the customer to deliver solutions leveraging its e-mobility technology competence. Notably, this will be delivered from LTTS' ER&D center in Krakow, Poland.

LTTS plans to have over 300 engineers working from its Krakow, Poland center in the next 3 years, marking its expansion into Eastern Europe.

L&T Technology Services, a listed subsidiary of Larsen & Toubro (L&T), is an engineering services provider, focused on offering innovative design and development solutions across the product development value chain, for industries such as industrial products, transportation, aerospace, telecommunications (telecom) and the process industry. As on 31 December 2021, L&T held 73.93% shares of LTTS.

Shares of L&T Technology Services dropped 5.69% to Rs 5,113 on BSE.

Powered by Capital Market - Live News