L&T Technology Services (LTTS) hit an upper circuit of 10% at Rs 3,201.25 after the IT firm reported a 11.11% rise in consolidated net profit to Rs 217 crore in Q1 June 2021 (Q1 FY22) over Rs 195.30 crore in Q4 March 2021 (Q4 FY21).
Consolidated revenue from operations grew 5.40% to Rs 1,518.40 crore in Q1 June 2021 from Rs 1,440.50 crore in Q4 March 2021. Profit before tax jumped 13.20% to Rs 295.70 crore in Q1 FY22 as against Rs 261.20 crore in Q4 FY21. The Q1 result was declared after trading hours yesterday, 14 July 2021.
The company's consolidated net profit surged 83.89% while revenues from operations soared 17.27% in Q1 June 2021 over Q1 June 2020. The EBIT margin stood at 17.3%, rising 520 bps YoY (year-on-year). The company's USD revenue stood at $205.70 million, a growth of 20% YoY.
During the quarter, LTTS won six deals with total contract value (TCV) of $10 million plus, which includes two $25 million plus deals. Revenues from digital and leading-edge technologies stood at 54% during the quarter.
At the end of the first quarter, the patents portfolio of LTTS stood at 719, out of which 531 are co-authored with its customers and the rest are filed by LTTS. At the end of Q1 FY22, LTTS' employee strength stood at 16,972.
Amit Chadha, the chief executive officer (CEO) and managing director (MD) of L&T Technology Services, said: "We started the new fiscal with a strong performance, despite the pandemic related challenges during the quarter. In Q1, we got our revenue back on the double-digit growth trajectory and marked four consecutive quarters of operating margin improvement. The deal pipeline is healthy across segments, and we expect broad based growth to continue."
"Our innovation engine is matching the pace of our growth as we filed a record 23 patents in Q1. To further scale and strengthen our technology and capability advantage, we have identified 6 strategic investment areas - Electric Autonomous & Connected Vehicle (EACV), 5G, Med- tech, Digital Manufacturing, AI & ML driven smart offerings and Sustainability. The focus will be on innovation and solution building in these new age areas that will position us as the partner of choice for customers in their next generation product development cycle."
LTTS, a listed subsidiary of Larsen & Toubro, is focused on Engineering and R&D (ER&D) services. The company offers consultancy, design, development and testing services across the product and process development life cycle.
The scrip was currently frozen at the record high of Rs 3,201.25.
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