Though the outlook is uncertain due to the pandemic, consolidation will help the company expand as customers redraw their business plans, the CEO said
L&T Technology Services registered net profit of Rs 204.8 crore, up 7 percent year-on-year, for the quarter-ended March 31. However, sequential growth in net profit was marginal.
Revenue stood at Rs 1446.6 crore, a growth of 8 percent year-on-year for Q4 FY20. The company’s growth in constant currency was 3.4 percent.
For the year-ended March 31, the company’s net profit grew 7 percent to Rs 818.8 crore. The revenue reported for FY20 was Rs 5,619.1 crore, a growth of 11 percent YoY.
Keshab Panda, CEO & Managing Director, L&T Technology Services, said in a statement that though the outlook is uncertain due to the pandemic, consolidation will help the company expand as customers redraw their business plans.
Most of the verticals witnessed growth, except telecom and high-tech. Growth from the vertical declined 18 percent to Rs 1,125.3 crore in FY20.
The vertical has not been seeing growth in the last few quarters. In July 2019, Chief Financial Officer Parameswaran Ramakrishnan had explained to Moneycontrol that client rampdown impacted almost 4 percent of revenue.
The impact of this rampdown was close to $28 million annually. It is likely to continue until September 2019, post which the company will witness buoyancy, Ramakrishnan had added.
Apart from this, the ongoing US-China trade war would likely affect the semiconductor business and the recent virus outbreak seemed to have furthered the impact. The sector accounts for about 24 percent of overall revenue.
The other four verticals are transportation, plant engineering, industrial products and medical devices.At the end of Q4 FY20, the company's employee strength stood at 16,883, a net addition of 96 during the quarter under review.