L&T Technology Service Ltd, a listed subsidiary of Larsen & Toubro, has reported a net profit of Rs 230 crore for the July-Sept quarter, thus recording a 6.4 per cent QoQ and 39.1 per cent YoY growth. The revenue for the said quarter stood at Rs 1,607 crore, recording a growth of 5.9 per cent QoQ and 22.4 per cent YoY.
While L&T's net income margin stood at 14.3 per cent, EBIT and EBIT margin was recorded at Rs 296.4 crore and 18.4 per cent, respectively. The company has announced a special dividend of Rs 10 per share to mark the five-year anniversary of its IPO (initial public offering).
Amit Chadha, CEO and Managing Director, L&T Technology Services Limited, said the demand environment is healthy, and the company is confident of broad-based growth continuing. "We raise our FY22 USD revenue growth guidance to 19-20 per cent," he said.
Among key deal wins, LTTS said it won five deals with total contract value of $10 million plus, which includes two $25 million plus deals. "A hi-tech client has selected LTTS as their strategic partner to establish extended product development centre for adoption of new-age technologies and accelerate time-to-market. For an American automotive supplier, LTTS will be expanding its dedicated design centre in India to strengthen capacity and capabilities. This centre will act as the customer’s future technology hub," the statement said.
LTTS also said it has been awarded a multi-year programme from an European oil & gas company to create "digital twins" for all its upstream and downstream assets, to reduce operational costs.
At the end of Q2 FY22, the patents portfolio of L&T Technology Services stood at 769, of which 556 are co-authored with its customers and the rest are filed by LTTS. The company's employee strength at the end of Q2 FY22 stood at 17,983. L&T Technology had reported an 84 per cent jump in its June quarter net profit at Rs 216.2 crore, largely on widening margins.
Meanwhile, the company board also announced the appointment of Luis Miranda as its independent director for five years with effect from October 19, 2021, subject to the approval of the shareholders. It also said Kapil Bhalla, company secretary and compliance officer, will superannuate from the position of the company secretary from October 29.
L&T Technology Service stock closed at Rs 5,215, up Rs 363.35 or 7.49 per cent, as compared to the previous session close of Rs 4,851.65 on the NSE today.
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