l&t tech earnings: L&T Tech Services consolidated net income for the first quarter up 27%

L&T Technology Services (LTTS) net income rose 27% to Rs 274.20 crore in the first quarter, better than analyst estimates, while revenue rose 23% year-on-year to Rs 1,873 crore, supported by strong growth revenue from leading customers and growth in demand. in its transport vertical.

A survey of ET analysts estimated revenue growth of around 20.5% and profits of 24.4% year-on-year.

On a sequential basis, net income rose 4.7% and revenue rose 6.7%.

The Bangalore-based firm retained its managed revenue growth in dollars 13.5-15.5% for the current financial year.

The company has successively added 572 employees. At the end of the quarter from April to June, the company’s total workforce was 21,433.

dropout rate was 23.2% for the period compared to 20.4% for the quarter ended March 31.

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“I see no problems in the next 2-3 quarters. We are no longer ringing wake-up calls and confirming our forecasts,” said Amit Chanda, managing director and chief executive of LTTS.

“We have not seen any pullback in the electric, autonomous and connected vehicle and vehicle segments. In some areas, such as mechanical engineering under industrial products, we have been asked to re-submit justifications for investment-oriented projects. But spending on oil and gas and CPG (Consumer goods in packaging) continues without any change,” Chanda told ET in an interview after the profit.

New launches in the high-tech vertical, where revenue streams are not guaranteed, are also being delayed, he said.

The L&T group firm won seven total contract value (TCV) deals of more than $10 million, including a $50 million deal and four $15 million deals, the best in a quarter.

The operating margin was 18.3%, down 30 basis points consecutively, but 100 basis points higher than last year.

According to Aditi Patil, a researcher at brokerage Prabhudas Lilladher, LTTS’ revenue numbers beat estimates, while margins were in line with expectations.

“Deal wins were significant while the top 11-20 clients saw healthy growth as they consistently grew 5.9% in dollar terms,” Patil said.

All verticals except telecommunications and high-tech recorded double-digit growth year-over-year.

Transport leads the vertical with 23.8% growth driven by demand from the aerospace and rail segments. The machine-building vertical of the plant gained 20.3%. Medical products rose by 13.9% and industrial goods by 13.6%.

Business in India grew by 19.6% year-on-year, while business in North America grew by 17.6%.

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