L&T Technology Services Grows 16% to Record High with Strong First Quarter Profits
Shares of the subsidiary of the country’s largest infrastructure developer – Larsen & Toubro – L&T Technology Services rose 16% to a record Rs 3,366 after releasing June quarter results. L&T Technology Services’ net profit in the first quarter of the current fiscal year jumped 84 percent to Rs 216 crore from Rs 117 crore in the same quarter last year. Its operating income rose 17% to Rs 1,518 crore from Rs 1,295 crore during the period of the previous year.
Its dollar revenue increased 20% to $ 205.7 million. Its EBIT margin, also known as the operating profit margin, improved 520 basis points to 17.3%.
âDuring the quarter, L&T Technology Services won six contracts with a total contract value (TCV) of $ 10 million and more, including two contracts of $ 25 million and more. Digital and advanced technology revenues were 54% in the quarter, âL&T said. Technology Services said in a press release.
âWe started the new fiscal year with a strong performance, despite the challenges associated with the pandemic during the quarter. In the first quarter, we returned our revenues to a double-digit growth path and marked four consecutive quarters of improvement in the operating margin. The transaction pipeline is healthy. across all segments, and we anticipate continued large-scale growth. Our innovation engine keeps pace with our growth as we filed a record 23 patents in the first quarter, âsaid Amit Chadha, CEO and Managing Director of L&T Technology Services, in a statement.
Following the good results published by L&T Technology Services, the shares of its parent company Larsen & Toubro rose by more than 4% to Rs 1,610 and the shares of another company in the L&T – L&T Infotech group jumped by 3.2 % to Rs 4,355.
At 10:31 am, shares of L&T Technology Services were trading 15% higher at Rs 3,335, outperforming the Sensex which was up 0.3%.