Shares of L&T Technology Services, the engineering services arm of Larsen and Toubro Group, jumped over 15 percent to hit a fresh 52-week high of Rs 3,366.40 after the company reported strong earnings for the June quarter, beating street estimates.
The company posted a net profit of Rs 216 crore in Q1FY22, recording a growth of Rs 11.1 percent as compared to Rs 194.5 crore in the March quarter.
Revenue during the quarter rose 5.4 percent to Rs 1,518.4 crore from Rs 1,440.5 crore, QoQ. In dollar terms, revenue witnessed a sequential growth of 4.2 percent to $205.7 million.
The company raised its FY22 USD revenue growth guidance to 15-17 percent.
“Deal traction was healthy in the quarter with six deal wins of TCV of USD 10 million-plus which includes two deals with TCV of USD 25 million-plus. Our innovation engine is matching the pace of our growth as we filed a record 23 patents in Q1. Revenues from digital and leading-edge technologies stood at 54% during the quarter,” said Amit Chadha, CEO & Managing Director, L&T Technology Services.
At the operating level, EBIT in the June quarter increased 9.7 percent to Rs 262.3 crore as against Rs 239.1 crore in the quarter ended March 2021. The company’s EBIT margin also improved by 70 bps to 17.3 percent from 16.6 percent, sequentially.
The numbers beat CNBC-TV18 analysts’ poll estimates on all fronts.
“The last four consecutive quarters of operating margin improvement has been a result of a gradual portfolio shift towards more digital engineering as well as operational efficiency initiatives around hiring, cross-skilling, productivity improvement, and cost optimisation,” added Chadha.
At 10:15 am, the shares of L&T Technology Services were trading 14.91 percent higher at Rs 3,344.20 apiece on the BSE.
First Published: IST