Q1FY23 Result: L&T Technology Services

Q1 Revenue up 23% YoY; Net profit up 27% YoY

Written by: IE&M Team

Published on: 17/07/2022

L&T Technology Services Limited (BSE: 540115, NSE: LTTS), leading pure-play engineering services company, announced its results for the first quarter ended June 30, 2022.

Highlights for Q1FY23 include:

Revenue at Rs18,737 million; growth of 23% YoY
USD Revenue at $239.5 million; growth of 20% YoY in constant currency
EBIT margin at 18.3%; up 100 bps YoY
Net profit at Rs2,742 million; growth of 27% YoY

During the quarter, LTTS won a USD 50 million plus deal, four USD 15 million deals and two deals with TCV of USD 10 million. “We started the new fiscal on a strong note with revenue growing sequentially by 4.7% in constant currency. Growth was led by Plant Engineering and Industrial Products, benefitting from spends towards digital manufacturing, energy transition and connected products. Our big bets focus has helped us to align ourselves with these strategic and multi-year customer programs. Deal wins were very strong during the quarter and spread across segments. Our Aerospace and Rail segment is seeing a revival of large deal bookings with a USD 50 million deal in Q1 on the back of a stellar long-term deal that we won in the prior quarter. We recently opened an engineering design center in Toulouse, France to cater to new age digital requirements of Aerospace. We see a broad-based pipeline of opportunities which gives us confidence of the growth momentum sustaining,” said Amit Chadha, CEO & Managing Director, L&T Technology Services Limited.

Patents

At the end of Q1FY23, the patents portfolio of L&T Technology Services stood at 913, out of which 625 are co-authored with its customers and the rest are filed by LTTS. At the end of Q1FY23, LTTS’ employee strength stood at 21,433.

L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. It offers consultancy, design, development and testing services across the product and process development life cycle. Its customer base includes 69 Fortune 500 companies and 57 of the world’s top companies, across industrial products, medical devices, transportation, telecom and the process industries.

About the author: IE&M Team

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