L&T Technology Services posted about 21 percent rise in consolidated net profit to Rs 191.5 crore for the fourth quarter of 2018-19, helped by broad-based growth across industry segments. The company's revenue from operations stood at Rs 1,343.1 crore, up 27 percent year-on-year and two percent on a sequential basis.
Parameswaran Ramakrishnan, CFO, L&T Tech discussed the Q4 performance.
"We exhibited industry-leading growth by closing FY19 revenue at $720 plus million with 26 percent growth," said Ramakrishnan.
“Our revenue uptick for Q4 which was at $191 plus million also showed 3 percent QoQ growth,” he said, adding that the company started FY19 with the guidance of 16 percent and ended with 26.5 percent.
“As things happened we upped the guidance to 18 percent during Q2 disclosure and in January we said that we will probably conclude the year with 24 percent growth. Therefore, the background is that we could witness double-digit growth in all the five verticals and we expect the robustness to continue in FY20 as well,” Ramakrishnan added.
According to him, FY19 margin expansion aided by operational efficiency and rupee deprecation.
On the margin front, the CFO said, “The industrial products, process industry and medical are the three segments which aggregate roughly around 40 percent of FY19 revenues. Their EBITDA margins are higher of 20 percent odd.”
“The largest segment is the transportation vertical which is 32 percent followed by telecom hi-tech around 27-28 percent thereby aggregating to 60 percent. This has EBITDA margins in mid-teens,” added Ramakrishnan.
“Our guidance of 14-16 percent is based on the fact that we deal with all the top clients in each of the five segments and our understanding considering the kind of projects we are running and the opportunities we have with all these clients, we believe that the double-digit growth should be visible across all the five segments even for FY20 as well,” he said.