L&T Technology Services Q4 results | Net profit rises 35% YoY to Rs 262 crore, revenue grows 22%

"Our growth was broad-based with all five segments growing in double digits and showing an improvement in operating margins," Chadha added.

Revenues for the full year in dollar terms grew by 19.5 percent to $880 million. In constant currency terms, the YoY growth in revenues was 20 percent.

Dollar revenues for the quarter came in at $ 232 million with an on-year growth of 17.5 percent and a sequential growth of 3.1 percent. Constant currency revenues grew by 19.4 percent YoY and by 3.6 percent on quarter.

Revenue growth was aided by a robust growth of 10-25 percent YoY across verticals with plant engineering vertical growing the most by 25.8 percent during the year followed by the transportation vertical, which grew at 22.7 percent. The company’s industrial products business also grew by more than 20 percent during the year while telecom & hi-tech and medical devices verticals witnessed a growth of 15 and 11 percent, respectively.

Among the geographies, North America grew the strongest at 22.5 percent while Europe and India businesses grew by 22 and 21 percent each. In Rest of world however, there was a de-growth of 5 percent during the year.

During the quarter, the company won a $100 million plus deal, one $25 million plus deal and 4 other deals with TCV of $10 million plus. Revenue from digital and leading-edge technologies stood at 57 percent during the quarter.

“We are making very good progress across our six bets; in Q4, we won a $100mn plus deal in the EACV space - being chosen as the strategic engineering partner for a new age electric VTOL (Vertical Takeoff and Landing) aircraft program”, added Chadha. “With this deal, we have been able to extend our EACV success at Auto and Trucks & Off Highway segments, to Aerospace, reflecting our multi-domain engineering expertise”.

The company had 324 active clients at the end of the quarter with 4 clients added in $5 million + basket and 10 new clients added in $1 million + bucket.

EBIT (earnings before interest and tax) margins for the quarter remained stable at 18.6 percent QoQ while on a YoY basis, there was an improvement of 200 bps from 16.6 percent EBIT margins achieved during the same period last year.

For the full year, the EBIT margins jumped 380 bps to 18.3 percent from 14.5 percent last year.

The company was able to improve upon its net margins for the quarter by 140 bps on year to 14.9 percent and by 20 bps QoQ. For the full year, net margins were higher by 240 bps at 14.6 percent.

The employee attrition for the quarter jumped to 20.4 percent compared to 17.5 percent during the previous quarter and 12.2 percent during the same quarter a year ago.

The company has recommended a final dividend of Rs 15 per equity share of face value of Rs 2 each, which works out to 750 percent.

The L&T Technology Services stock closed Rs 63.5 or 1.5 percent up at Rs 4,244.3 at the National Stock Exchange on April 21. It generated returns of 62.7 percent in the past year while the stock is down 11.4 percent in the past one month.