L&T Technology Services Ltd. – Highlights
- The stock rallied after the company reported better-than-expected June quarter (Q1FY22) results.
- L&T Technology Services said in a regulatory filing that its revenue from operations increased 17 % to Rs.1518 crore in the first quarter of FY22 from Rs.1294.7 crore the previous year and as of today’s date, this is the share price of L&T Technology Services Ltd.
- The company reported an 84% year-on-year (YoY) and 11.1% quarter-on-quarter (QoQ) increase in its Q1FY22 net profit at Rs.216.20 crore on Wednesday, owing largely to wider margins. Revenues increased 4.2% in dollar terms and 4.3% in constant currency (CC) terms sequentially. During the quarter, revenue from digital and cutting-edge technologies accounted for 54% of total revenue.
- Despite a wage increase in Q1FY22, the EBIT margin increased 70 basis points (bps) QoQ to 17.3 %, aided by efficiency improvements, better utilization, and ongoing workforce rightsizing. Revenues are expected to increase 15-17% in FY22E, according to the company. Deal traction was strong in the third quarter, with six deals worth more than $10 million in total contract value (TCV), including two for more than $25 million.
- The last four consecutive quarters of operating margin improvement, according to management, have resulted from a gradual portfolio shift toward more digital engineering, as well as operational efficiency initiatives centred on hiring, cross-skilling, productivity improvement, and cost optimization.
- L&T Technology Services patent portfolio stood at 719 at the end of the first quarter, with 531 co-authored with its customers and the rest filed by the company. L&T Technology Services had 16,972 employees at the end of the first quarter.
- L&T Technology Services Limited (LTTS) is a publicly listed subsidiary of Larsen & Toubro Limited that provides engineering and research and development (ER&D) services. Across the product and process development life cycle, the company provides consultancy, design, development, and testing services.
- Clients include 69 Fortune 500 companies and 57 of the world’s top ER&D firms in industrial products, medical devices, transportation, telecommunications and high-tech, and process industries. As of June 30, 2021, it had over 16,900 employees spread across 17 global design centres, 28 global sales offices, and 69 innovation labs, with headquarter in India.
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