IT & ITES News

larsen & toubro: L&T Tech Q4 Results: Net profit up 18%, revenue up 19% YoY

[ad_1]

Larsen & Toubro Technology Services (LTTS) reported an 18.2% jump in net profit over the previous year for the quarter ended in March to Rs 309 crore, in line with analyst estimates in a quarter hit by a higher number of non-working days and budget adjustments by clients. Revenue grew 19.4% during the same period to Rs 2,096 crore, beating estimates.

On a sequential basis, profit grew 2% and revenue grew 2.3%.

For the full fiscal year 2023, revenue grew 22% to Rs 8,013 crore while profit also jumped 22% to cross the Rs 1,000-crore milestone at Rs 1,169 crore. For FY24, the company guided USD constant currency revenue growth of 20% plus (10% plus organic growth) which was above analyst estimates, led by strong deal momentum. Analysts pegged organic revenue growth guidance at 7-9%.

The operating margin for the quarter stood at 18.7%, also above analysts’ estimates. The company declared a final dividend of Rs 30 per equity share with face value of Rs 2 each.

The company expects revenue to touch $1.5 billion in constant currency by FY25.

“That was a slow quarter for us because we got hit by furloughs. We got hit by some ramp downs and people were adjusting their budgets,” Amit Chadha, CEO & managing director of LTTS, told ET.

Discover the stories of your interest


He added that companies are now focused on costs and are seeking to intensify offshoring and will be a huge opportunity for India. The company has 56.3% share of revenue coming from offshore solutions and sees the possibility of going up to 60% in the mid-term.“If I look at the macro conditions, customers are spending on energy transition, and electrification. In the digital space, they are spending on cybersecurity AI, hyperautomation, enhanced speeds of connectivity, computer power increase, and cloudification,” he said.

However, he added that the company is bullish about growth in FY24 demonstrated by the organic growth guidance as well as the sentiment to hire more employees than it did in the FY23. During the quarter, LTTS won a $40 million deal and three $10 million plus total contract value (TCV) deals.

The company expects to hire 1,500-2,000 freshers in the 2024 fiscal year.

“We added 4,400 people in FY22 and 1,400 in FY23 (net). We squeezed utilisation in FY23 as record increments were given out. We will now focus on hiring and expect it to be higher in FY24 than FY23,” said Chadha.

Attrition stood at 22.1% during the quarter, down from 23.3% in the last quarter. Chadha expects the number to drop further by 1-3% during the current fiscal.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

[ad_2]

Source link