L&T Technology Services Q3 net profit up 10 pc at Rs 204 cr

IT company L&T Technology Services on Friday posted a 10 per cent rise in consolidated net profit at Rs 204 crore during the quarter ended December 31, 2019 mainly on account of business growth in North America.

The company had posted a net profit of Rs 185.6 crore in the same period a year ago.

"We had a strong performance in three segments - transportation, plant engineering, and medical devices that are each growing in excess of 20 per cent on year-on-year (YoY) basis. Digital and leading-edge technologies - the growth driver for ER&D ( Engineering and R&D), contributed to 41 per cent of third quarter revenues and grew by 29 per cent YoY," L&T Technology Services Limited (LTTS) CEO and Managing Director Keshab Panda said in a statement.

The company's revenue increased 8.1 per cent to Rs 1,423 crore in the quarter from Rs 1,316.9 crore in October-December 2018-19.

"We are seeing a new set of opportunities as customers seek disruptive technologies like AI, sensor fusion and industrial robotics to strengthen their market competitiveness," Panda said.

The company opened its 9th design center outside India, Aerospace and Defense Engineering Design Center in Rockford, Illinois (US), that will cater to the development of high-performance engineering solutions for the global aerospace and defence industry.

The revenue of the company from telecom and high-tech segment declined 26.7 per cent on year-on-year basis.

LTTS' revenue in North American market grew by 13.7 per cent, while it recorded dip in all other main markets.

The company's revenue in Europe and India declined by 6.3 per cent and 1.8 per cent, respectively.

Onsite projects contributed 44 per cent to the total revenue of the company and the rest was from offshore projects.

Shares of LTTS closed at Rs 1,634.8 apiece on the BSE on Friday, 1.15 per cent lower than the previous close.