29-Feb-2020Today's Market Indicators

L&T Technology reports Q3 net profit at Rs 204 cr
(13:11, 18 Jan 2020)

Consolidated PBT (profit before tax) fell 0.75% to Rs 274.50 crore in Q3 December 2019 (Q3FY20) as against Rs 276.60 in Q2 September 2019 (Q2FY20). The result was announced after market hours on Friday, 17 January 2020. Ahead of the result, shares of LTTS declined 1.15% to close at Rs 1,634.80 on Friday.

Consolidated EBITDA rose 1.1% to Rs 286.30 crore in Q3FY20 over Q2FY20. Consolidated EBIT margin stood at 16.8% in Q3FY20 as against 17% in Q2FY20 and 16.5% in corresponding quarter last year.

On a year-on-year (YoY) basis, consolidated net profit grew 10% while net sales increased 8% in Q3FY20.

During this quarter, the company bagged 9 multi-million dollar deals across all major industry segments including two deals worth $30 million each. On a YoY basis, LTTS increased its $20 million clients by 2 and its $10 million clients by 4.

Total headcount stood at 16,787 at the end of the December 2019 quarter. Attrition on last 12-month basis stood at 13.9%.

At the end of the third quarter, the patents portfolio of LTTS stood at 472, out of which 352 are co-authored with its customers and the rest are filed by LTTS.

Commenting on the results, Dr. Keshab Panda, the CEO & managing director of L&T Technology Services, had stated, Q3 results were consistent with our expectations. We had a strong performance in three segments - Transportation, Plant Engineering, and Medical Devices that are each growing in excess of 20% on YoY basis. Digital & leading-edge technologies - the growth driver for ER&D, contributed to 41% of Q3 revenues and grew by 29% YoY.

We are seeing a new set of opportunities as customers seek disruptive technologies like AI, sensor fusion and industrial robotics to strengthen their market competitiveness. As part of our strategy to be the preferred ER&D partner to our customers, we continue to invest in building competencies and design centers that will take us closer to the customer. Last quarter we opened our 9th design center outside of India - an Aerospace & Defense Engineering Design Center in Rockford, Illinois (USA) that will cater to the development of high-performance engineering solutions for the global aerospace and defense industry, he added.

L&T Technology Services is an engineering research and development services company. The firm is engaged in providing a range of engineering services and related technologies in the areas of embedded systems, mechanical and others. Its segments include transportation, process engineering, industrial products, medical devices and telecom.

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