Riding on strong deal wins, L&T Technology Services (LTTS) posted a 7.5% rise in consolidated net profit to Rs 303.6 crore for Q3 ended December 31. It had posted a net profit of Rs 282.4 crore Q2 and a net profit of Rs 248.8 crore a year ago .
The company’s revenues rose 2.7% q-o-q to Rs 2,048.6 crore from Rs 1,995.1 crore in the September quarter and a 21.4% rise from Rs 1,687.5 crore posted a year ago.
LTTS’ earnings beat consensus estimate of Bloomberg analysts, who were expecting net profit of Rs 296.70 crore. However, revenue fell a tad below expectations of Rs 2,061.90 crore (both 14 brokers).
In Q3, LTTS won five $10-million-plus total contract value deals and a significant empanelment with Airbus.
“Our double-digit revenue growth momentum continued in Q3 led by transportation and industrial products. Three of the five $10-million-plus deal wins were from industrial products on the back of our differentiated capabilities such as digital twin and sustainability driven product development,” CEO & MD Amit Chadha said.
The firm recorded an Ebit margin of 18.7% in Q3, which helped it cross the Rs 300-crore milestone in quarterly profits. As of December end, LTTS had a patents portfolio of 1,033, of which 695 were co-authored with customers. The employee strength stood at 21,649.
“Towards meeting our aspiration of a $1.5-billion run-rate by FY25, we are making strategic investments. In Q3, we opened a new centre in Toronto for digital engineering and expanded our operations in Peoria to offer digital manufacturing and next-gen electrification solutions,” Chadha added.
LTTS also said Airbus has selected the company as a strategic engineering partner. The company will provide advanced engineering capabilities and digital manufacturing services under a multi-year contract, and support Airbus in key verticals and technology areas for its ongoing commercial and innovation programmes.
Last week, LTTS entered into an agreement to acquire SWC – a connected intelligence solution provider with presence in communications, safe and smart solutions and cybersecurity – from parent L&T in an Rs 800-crore deal. SWC has an employee base of more than 700 engineers, and had posted a revenue of Rs 1,098 crore in FY22.