However the company has given revenue guidance of 14-16 percent for FY20, less compared to the 24 percent the company had given for FY19.
L&T Technology Services (LTTS) on May 3 has delivered its highest ever growth for FY19 in the March quarter driven by the growth in the electrification of vehicles, autonomous vehicles and over the top (OTT) systems.
For FY20, the company is looking at another good year of growth on the back of a healthy pipeline for deals, and a rising momentum in the transportation and logistics sector, said Amit Chadha, President, LTTS.
Chadha said, “This growth is probably the highest we have seen so far in our history.” He explained that this was driven by two or three factors.
The company saw good demand for its digital engineering services from the US, Europe and Japan. This demand was driven by the automotive sector due to a growing momentum in autonomous driving, the electrification of vehicles and infotainment systems.
Manufacturing plants are also investing in smart manufacturing operations, medical devices companies are spending on digital innovation and investments in 5G. The rising momentum in the media and entertainment space is driven by the growth of the over the top (OTT) space.
“We also see a healthy pipeline of large deals that we continue to close quarter-to-quarter and ramp up quarter-to-quarter as well. Overall it’s a good place to be in as we stand today,” Chadha added.
However the company has given a revenue guidance of 14-16 percent for FY20, lesser in comparison to the 24 percent guidance the company had given for FY19.
Parameswaran Ramakrishnan, Chief Financial Officer, explained, “We started FY19 with a guidance of 16 percent growth. As we completed Q2 we upped the guidance to 18 percent and talked about the guidance of 24 percent.”
Ramakrishnan further pointed out that there was a client ramp down in one specific segment, which impacted almost 4 percent of the revenue based on the Q4 runrate.
“So we thought that it would be prudent at the start of year. Considering the robust pipeline we see in all the segments, we see a growth opportunity of mid-teens. As we go into the year after we finish the first quarter, we will be in a better position to comment on growth guidance later on for the balance three quarters,” he added.
Talking about macro-economic trends and its impact on business, Chadha said, “Macro-economic trends will impact us and there is no going back on that. We are assuming as we move forward there will be fair stability in the market. We are not seeing any signs of any reductions anywhere.”
Ramakrishnan said that while there might an impact due to external factors such as ramp down of a client, the company can offset it given its diverse portfolio.
LTTS reported a fourth quarter net profit of Rs 192.4 crore, up 20 percent from Rs 159.1 crore posted in the comparable quarter last year.The company’s full-year revenue stood at Rs 5,078 crores, up 36 percent YoY and net profit was Rs 766 crore, up 51 percent compared to the comparable period last year. This meets the revenue guidance of 24 percent the company gave for the entire year.The Great Diwali Discount!
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