L-;T Tech's PAT up 22.8 % y-o-y to Rs 282 crore

19 Oct 2022 , 03:31 PM

Due to the ramp-up of previously closed deals and strong performance across verticals, L&T Technology Services' second-quarter net profit increased by 22.8% year over year to Rs282 crore. The software services provider also increased its projected dollar revenue growth for the current fiscal year amid generally strong demand.

All verticals recorded double-digit growth rates, driving up revenue by 24.1% to Rs1,995 crore. Sequentially, revenue increased by 6.5% while net profit grew by 3%.

Due to the rise in employee remuneration, operating margins were 18.3%, down 20 basis points (bps) from the prior quarter and 10 bps from the previous year.

The company increased its previous prediction for the current fiscal year's dollar revenue growth to 15.5-16.5% from 13.5-15.5%.

According to managing director and CEO Amit Chadha who talked to ET, "We are continuing to access consumers through our cost-to-market, speed-to-market, and tech refresh-based capabilities," regarding the guidance upgrade.

"We are leveraging our electric vehicle bet among truck, car, and aerospace clients in the transportation vertical, while digital manufacturing comes to the core in the plant engineering vertical as labour shortage continues to materialize," he continued.

All other areas had "quite solid" demand, according to Chadha, with the exception of the high-tech vertical and customers who were re-evaluating their expenditures for projects without guaranteed profit streams.

The transportation sector saw LTTS secure a transaction worth more than $60 million, marking the third consecutive quarter in which the vertical saw victories in the $50 to $100 million overall contract value range.

A Rs15 dividend per share was declared by the board.

All industries saw year-over-year growth, with the transportation sector expanding by 25.2% as a result of the truck, auto, and aerospace clients driving their spending in the area of electric, autonomous, and connected vehicles. The vertical for plant engineering increased by 20.8%.

The company successively hired 31 new workers. At the end of September, it had 21,474 employees. Over the course of three months, the attrition rate increased by 90 basis points to 24.1%.

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