L&T Technology's net profit up 5% at ₹315 cr in Sept quarter

L&T Technology Services Limited announced the financial results for the September quarter on Tuesday. During the quarter under review, the company’s net profit stood at ₹315 crore, up by 5% year-on-year, as against ₹300 crore in the same period last year. On a sequential basis, the company’s profit was up 0.9% from ₹312.1 crore in the June quarter.

The company’s revenue from operations in the September quarter surged 4.7% to ₹238.65 crore, as against ₹228.17 crore in the same period last year.

During the quarter under review, the company’s EBIT (earnings before income and tax) margin stood at 17.1%. 

"We had a strong performance with revenue growing by 3.2% sequentially in constant currency and operating margin sustaining at 17% plus levels even as we absorbed wage hikes for our employees. Deal momentum was strong with the highlight being a $10 million plus deal win leveraging SWC capabilities in North America. This win has been the result of having a superior end-to-end technology stack for wireless and 5G communications which is becoming a key differentiator for us," says Amit Chadha, CEO & MD, L&T Technology Services Limited.

In the September quarter, the company’s voluntary attrition rate stood at 24.1% as against 16.7% in the September quarter of FY23. The company’s attrition rate in the June quarter was 18.9%. During the quarter under review, the total headcount stood at 22,265 employees.

"We are investing in software-defined vehicles, AI and cybersecurity and will have close to 2,000 employees trained over the next few quarters. Our collaboration with hyperscalers and chip companies is helping us develop AI solutions and services that address the needs of industries like Auto, Manufacturing and Medical. We are optimistic that such investments will strengthen our position as the engineering partner of choice for global ER&D companies," Chadha says.

The company has revised its growth guidance to 17.5% - 18.5% for FY24. "While longer-term trends for ER&D remain strong, in the short term we are seeing longer decision cycles and incremental headwinds from the macro-economic stress in various geographies. We revise our USD revenue growth guidance for FY24 to 17.5%-18.5% in constant currency," says Chadha.

Notably, the board of directors announced an interim dividend of ₹17 per share. The record date for the interim dividend is October 27, 2023.

Ahead of the quarterly results, the share price of the company closed 1.57% lower at ₹4,615.45. The company’s market capitalisation stood at ₹48,789 crore with 4,700 shares exchanging hands as against the two-week average of 5,290 shares.