L&T Tech Services posts 18% rise in net profit in Q4, declares dividend of Rs 30 per share

Engineering services company L&T Technology Services (LTTS) Ltd on Wednesday reported an 18 percent year-on-year jump in net profit at Rs 309.6 crore for the fourth quarter that ended March 31, 2023.

In the corresponding quarter last year, the company posted a net profit of Rs 262 crore. CNBC-TV18 Polls had predicted a profit of Rs 309.5 crore for the quarter under review.

In the March quarter, total revenue stood at Rs 2,096.2 crore during the period under review, up 19 percent against Rs 1,756.1 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted revenue of Rs 2,088 crore for the quarter under review.

The company's earnings before interest and tax (EBIT) increased 2.6 percent quarter-on-quarter to Rs 392.7 crore from Rs 382.9 crore. The EBIT margin stood was flat at 18.7 percent in the March quarter.

In dollar terms, the company's revenue stood at $255.1 million in March 2023 quarter against $248 million in the December quarter, a rise of 2.9 percent quarter-on-quarter

During the quarter, LTTS won a $40-million deal and three $10-million plus TCV deals. Also, LTTS’ employee strength stood at 22,233 in the March quarter, according to the regulatory exchange filing by the company to the stock exchanges.

Amit Chadha, CEO, and Managing Director, said FY23 was a landmark year for the company as it crossed $1 billion in revenue run rate and Rs 1,000 crore in annual profits.

Our EBIT margin was the highest ever at 18.5 percent driven by a strong focus on building a robust and sustainable operating model. The combination of steady growth and expanding operating margin has led to an 18 percent CAGR in profits over the last 5 years, Chadha said.

The board of directors recommended a final dividend of 1,500 percent i.e. Rs 30 per equity share of face value of Rs 2 each, subject to approval of the shareholders of the company.

The results came after the close of the market hours. Shares of L&T Technology Services Ltd ended at Rs 3,439.30, up by Rs 14.25, or 0.42 percent on the BSE.