L&T Tech net profit rises 13% to Rs 311.1 cr in Q1 FY24; revenue up 14.7%

Engineering services company L&T Technology Services (LTTS) on Tuesday reported a net profit of Rs 311.1 crore in Q1 FY24, increasing 13 per cent year-on-year (YoY), but down 8.5 per cent compared to the previous quarter.
 
Revenue from operations in the first three months of FY24 stood at Rs 2,301 crore, an increase of 14.7 per cent compared to the same quarter last year. This includes the revenue from the recently acquired Next-gen communication firm Smart World & Communications (SWC). The revenues were down 2.9 per cent on a quarter-on-quarter (QoQ) basis.
 
The EBIT margin of the company came in at 17.2 per cent, falling 70 basis points (bps) sequentially and 20 bps YoY.

 

The performance in Q1 was subdued due to delayed decision-making by clients from clients in-plant engineering, semiconductors and electronics.
 
On the other hand, the growth was led by the transportation vertical, which grew 3.9 per cent.
 
The company also announced that it secured a $50 million contract from a global technology company to enable new opportunities for digital media platforms.
 
The company has retained its revenue growth guidance for FY24 at 20 per cent and its target of achieving $1.5 billion in annual revenue by FY25.
 
“In telecom, though our next-gen communication and 5G revenue grew, our semiconductor and electronics revenue fell. Plants engineering de-grew by about $1.8 million, which was not expected. This happened because some of the client inputs on executing projects got delayed. Some supply chain issues are still going on so projects have been delayed. But they will get executed in coming quarters. If I look forward, transportation, Smart World, plant engineering and IT will continue to grow in Q2,” Amit Chadha, chief executive officer and managing Director of L&T Technology Services Limited told Business Standard.