L&T Tech kicks off FY19 with 101% profit rise

Pure play engineering services company L&T Technology Services Limited (LTTS) posted a net profit at ~1,975 million, a 24 per cent growth quarter on quarter and 101 per cent year on year.

Revenues stood at ~11,522 million, a 9.2 per cent growth sequentially and 40.1 per cent over the year. Profits included a ~470 million payout.

“Revenues from digital & leading-edge technologies increased to 31% of the overall business and grew 79 year on year,” said Keshab Panda, chief executive officer and managing director, L&T Technology Services.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ~1,961 million during the quarter, while EBITDA margin at 17.0 per cent rose 16 per cent sequentially and 56 percent over the year.

During the quarter, two clients crossed $50 million in annual billing. On a yearon-year basis, LTTS increased its $10-million client category by two and the $5-million category by five.

Panda attributed the large deals to specific client mining that the company was focusing on. Clients were turning towards value-added digital projects and expanding in new geographies and technologies, he added.

Segment wise, transportation and telecom and hi-tech have grown the fastest. According to the management, huge traction received from semiconductor and chip design clients pushed growth. At the end of the first quarter, LTTS’ employee strength stood at 13,081, a net addition of 774 against a year ago.