L&T Technology Services Q2 net profits rises 7.8% at Rs 205.8 cr

Larsen & Toubro Technology Services (LTTS) on Friday posted a 7.8 per cent rise in consolidated net profit to Rs 205.8 crore for the second quarter ended September 30.

The company had registered a net profit of Rs 191 crore in the corresponding quarter of the previous fiscal, it said in a regulatory filing.

Its revenue grew 10.7 per cent to Rs 1,402.1 crore in the said period as against Rs 1,266.1 crore a year ago, it added.

"Our Q2 revenue growth of 2.5 per cent quarter-on-quarter in constant currency was a bit softer than what we expected. While plant engineering and medical devices each grew in excess of 20 per cent year-on-year and was in-line with our expectation, the growth in Telecom & Hitech and Transportation came below expectations on account of decision-making delays amid continuing uncertainty over global trade negotiations," LTTS CEO and Managing Director Keshab Panda said.

The company sees a likelihood of some of these trends persisting in the current quarter as well, and therefore, expect third quarter growth in these segments to be relatively muted, he added.

"With greater visibility into the second half, our revised US dollar revenue growth guidance stands at 10 per cent. We continue to see significant growth opportunities ahead," he added.

During the quarter, LTTS won eight multi-million dollar deals across all major industry segments, including new digital engineering programmes for automotive, plant engineering and medical customers.

"We remain confident about our capabilities across a wide spectrum of industries that is helping us mitigate headwinds in certain segments and continue the double-digit growth trajectory," Panda said.

The company's revenue in US dollar terms grew 11.6 per cent year-on-year to USD 197.7 million.

Its headcount stood at 16,789 at the end of the quarter, a net addition of 876 during the quarter. Its attrition stood at 13.4 per cent.

The company has also re-designated Abhishek Sinha as COO and whole-time director of the company.

Also, Renuka Ramnath has resigned as independent director of the company with effect from October 18, 2019 due to other professional commitments, it said.