Riding on strong deal wins, L&T Technology Services (LTTS), a subsidiary of construction major Larsen & Toubro (L&T), posted a 4.7% rise in consolidated net profit to Rs 274.2 crore for the first quarter ended June 30. The company had posted a net profit of Rs 262 crore in fourth quarter ended March 31.
The company’s earnings beat the consensus estimate of Bloomberg analysts, who were expecting the firm to post a net profit of Rs 268.6 crore for the reporting quarter.
The pure-play engineering services company had a posted a consolidated net profit of Rs 216.2 crore a year ago. During the quarter under review, revenues rose 6.7% to Rs 1,873.7 crore, from Rs 1,756.1 crore in Q4FY22, and 23.4% from Rs 1,518.4 crore posted in Q1FY22, LTTS said in a statement.
“Deal wins were very strong during the quarter and spread across segments. Our aerospace and rail segment saw a revival of large deal bookings with a $50-million deal in Q1 on the back of a stellar long-term deal that we won in the prior quarter. We recently opened an engineering design centre in Toulouse, France, to cater to new-age digital requirements of aerospace,” LTTS chief executive officer and managing director Amit Chadha said.
Apart from the $50-million deal, LTTS also won four $15-million deals and two deals with total contract value of $10 million.
“We started the new fiscal on a strong note with revenue growing sequentially by 4.7% in constant currency. Growth was led by plant engineering and industrial products, benefitting from spends towards digital manufacturing, energy transition and smart & connected products. Our big bets focus has helped us to align ourselves with these strategic and multi-year customer programmes,” he added.
In his address to shareholders at the company’s annual general meeting on Friday, chairman AM Naik said that the present growth momentum will be sustained and built upon during the current fiscal.
“Analysts are predicting a 9% annual growth rate for the global ER&D (engineering, research and development) industry, which is expected to be worth $2.1 trillion by 2024. I believe that R&D investments alone would grow by 10-20% across most of the leading technology firms to meet evolving customer demands. LTTS is poised to capitalise on these opportunities,” Naik, who is also chairman of L&T Group, said.