L&T Technology Services Q4 PAT rises 5.3% QoQ to Rs 262 cr

The pure play engineering company reported a 5.3% increase in consolidated net profit to Rs 262 crore, on a revenue increase of 4.1% to Rs 1756.10 crore in the fourth quarter of March 2022 compared to the third quarter from Dec 2021.

Compared to the fourth quarter of March 2021, the company’s consolidated net profit and sales increased by 34.7% and 21.9%, respectively.

EBITDA increased by 3.5% quarter on quarter (QoQ) and 29.8% year on year (YoY) to Rs 380.40 crore in Q4 FY22. EBITDA margin was 21.7% as in Q4 FY22 versus 21.8% in Q3 FY22 and 20.3% in Q4 FY21.

L&T Technology Services (LTTS) revenue in USD was $232 million for the quarter, growing 3.1% quarter on quarter and 17.5% year on year. In constant currency, it reported growth of 3.6% quarter on quarter and 19.4% year on year.

During the quarter, LTTS won a $100 million plus deal, a $25 million plus deal and 4 other deals with a total contract value (TCV) in excess of $10 million. Revenues from digital and advanced technologies were 57% during the quarter.

In the year ended March 2022 (FY22), the company’s net profit was Rs 957 crore, a growth of 44.3%. The turnover was Rs 6569.70 crore for the year, a growth of 20.6%. In dollar terms, it reported revenue of $880 million for the year, growing 19.5%. In constant currency, LTTS reported 20% growth.

The board recommended a final dividend of Rs 15 per share.

At the end of Q4FY22, LTTS’s workforce was 20,861. 12-month churn at the end of the quarter was 20.4%, compared to 17.5% in Q3 FY22 and 12.2% in Q4 FY21.

At the end of Q4FY22, L&T Technology Services’ patent portfolio was 868, of which 605 are in collaboration with its clients and the remainder filed by LTTS.

Amit Chadha, CEO & Managing Director, LTTS, said: “Our FY22 performance was strong across the six dimensions of our strategy. We delivered US dollar revenue growth of 20% in constant currency for the year, with double-digit growth at each of our 5 segments and 20% plus growth in Transportation, Industrial Products and Plant Engineering Digital and leading technologies have been a growth engine and differentiator for us, contributing to 56% in FY22 Technology quotient improved with patent filings by our engineers rose to 98, which is more than three times what they were in the previous year.With better quality of growth and improvement in operational metrics, we were able to improve EBIT margins to 18.3% for the year – an improvement of 380 basis points.

We are making very good progress on our six bets; in the fourth quarter, we won a $100 million plus deal in the EACV space – we were chosen as the strategic engineering partner for a new VTOL (Vertical Takeoff and Landing) electric aircraft program. This deal allowed us to extend our EACV success in the Auto and Trucks & Off Highway segments to Aerospace, reflecting our track record of engineering and technology across multiple domains and expertise.

Deal bookings remain strong with a total of 6 deals winning over $10 million in the fourth quarter, including a $100 million plus deal in EACV and another $25 million plus deal. We see a healthy deal pipeline and demand environment across all segments. Our outlook for FY23 is revenue growth in dollar terms of 13.5-15.5%.”

LTTS is a publicly traded subsidiary of Larsen & Toubro focused on Engineering and R&D (ER&D) services. It provides consultancy, design, development and testing services throughout the product and process development lifecycle.

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(This story has not been edited by Business Standard staff and is generated automatically from a syndicated feed.)

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