L&T Technology Services reports 13% YoY increase in net profit

Engineering services company L&T Technology Services (LTTS) has reported a net profit of  ₹311 crore with a year-on-year (YoY)  growth of 13% for the first quarter that ended June 30. The company recorded a 15% YoY increase in Rupee revenue at ₹2,301 crore and a 10% rise in constant currency. LTTS’ operating margin for FY24Q1 was reported to be 17.2%.

Further, in terms of workforce, the company headcount stood at 23,392, up from 21,433 in FY23Q1.

On June 18, the company also announced a $50 million contract with a global technology company for five years. LTTS would be building the customer’s cloud-native portfolio and optimise customer experience functions, as per an official statement. Additionally, the company won five deals with a total contract value of more than  $10 million each.

“We had a quarter of strong deal wins across all five segments, the highlight being a $50 million plus deal in Telecom and Hitech. Our customers continue to spend on transformational technologies and seek ER&D partners who can deliver innovation, speed-to-market and cost synergies,” said Amit Chadha, chief executive officer and managing director, LTTS.

“Our investments into emerging technology areas like AI, Software Defined Vehicle (SDV) and cybersecurity continue to help us engage with customers on ways to prioritise strategic spends and increase market agility”.

The quarterly result announcement was kicked off last week, with Tata Consultancy Services reporting first on July 12. The country’s biggest IT services company reported a 16.8% YoY rise in consolidated net profit to ₹11,074 crore for the June quarter. Its consolidated revenue increased 13% YoY to ₹59,381 crore, which was lower than the estimated ₹59,500 crore.

Further, in Q1FY24, HCL Technologies reported a revenue of ₹26,296 crore, up by 12.1% YoY, but declined 1.2% sequentially. In constant currency (CC) terms, the company’s revenue grew 6.3% YoY. The company’s net profit grew 7.6% YoY at ₹3,534 crore.  

Lastly, IT services firm Wipro on July 13 reported 11.9% YoY rise in consolidated net profit at ₹2,870.1 crore in the quarter ending June 30 compared to a consolidated net profit of ₹2,563.6 crore in the year-ago period.