LTTS Q2 results: Net profit up 39% to Rs 230 crore
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Synopsis
In dollar terms, revenues were up 22 per cent at $217.4 million, and the EBIT margin was at 18.4 per cent, up 470 basis points.
By ET Bureau
PUNE: Engineering services firm L&T Technology Services (LTTS) reported a net profit of Rs 230 crore, up 39 per cent and revenues of Rs 1,608 crore, up 22 per cent for the quarter ended September 30, 2021. In dollar terms, revenues were up 22 per cent at $217.4 million, and the EBIT margin was at 18.4 per cent, up 470 basis points.
“We had a strong quarter with 6 per cent sequential growth in constant currency driven by healthy traction in digital engineering across all our five segments. The rising digital adoption across our customer base has led to our revenue from digital & leading-edge technologies increasing to 55 per cent in Q2.” Said Amit Chadha, CEO & Managing Director, L&T Technology Services.
During the quarter, LTTS won 5 deals with TCV of USD10 million-plus, which includes 2 USD25 million-plus deals.
“Medical, our youngest segment, crossed $100mn in annualized revenue and is a testament to our differentiated domain expertise and strategic relationships. We are seeing a healthy deal pipeline and good traction in our six big bets - Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability. Our broad-based growth was accompanied by a rise in Operating margin which at 18.4 per cent is the highest we have reported. We will continue the journey of investing in innovation labs and capability building, which has yielded us gains in market share and operating model efficiency,” he said.
At the end of the second quarter, the patents portfolio of L&T Technology Services stood at 769, out of which 556 are co-authored with its customers and the rest are filed by LTTS. Its total employee strength was at 17,983.
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The L&T group firm declared a special dividend of Rs 10 per share to mark the 5-year anniversary of its IPO. “We had a strong quarter with 6 per cent sequential growth in constant currency driven by healthy traction in digital engineering across all our five segments. The rising digital adoption across our customer base has led to our revenue from digital & leading-edge technologies increasing to 55 per cent in Q2.” Said Amit Chadha, CEO & Managing Director, L&T Technology Services.
During the quarter, LTTS won 5 deals with TCV of USD10 million-plus, which includes 2 USD25 million-plus deals.
“Medical, our youngest segment, crossed $100mn in annualized revenue and is a testament to our differentiated domain expertise and strategic relationships. We are seeing a healthy deal pipeline and good traction in our six big bets - Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability. Our broad-based growth was accompanied by a rise in Operating margin which at 18.4 per cent is the highest we have reported. We will continue the journey of investing in innovation labs and capability building, which has yielded us gains in market share and operating model efficiency,” he said.
At the end of the second quarter, the patents portfolio of L&T Technology Services stood at 769, out of which 556 are co-authored with its customers and the rest are filed by LTTS. Its total employee strength was at 17,983.
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