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LTTS Records Net Profit Worth Rs.336.2 Crore for the Third Quarter

CIO Insider Team | Wednesday, 17 January, 2024
Separator

For the third quarter, Larsen and Toubro Technology Services (LTTS) recorded a net profit of Rs 336.2 crore, an increase of 13.3 percent year over year. The business reiterated its $17.5–18.5 percent revenue growth forecast for FY24.

Profit increased sequentially by 6.6 percent. With revenue of Rs 2,422 crore for the quarter, it increased 1.5 percent sequentially and 12.3 percent YoY.

The operating margin increased by 10 basis points during the quarter to 17.2 percent. Amit Chadha's reappointment as managing director and chief executive officer for an extra three years, from April 2024 to March 2027, was also announced by the firm.

According to Chadha, 2024 client expenditure is expected by the company to be flat or somewhat better than 2023.

“The contours of spending will change, they will lean more towards product redesign, cost takeout, productivity, and efficiency. There will also be more focus on localized supply chains,” said Chadha while adding that AI for medical and hi-tech will see more demand.

With six deals of $10 million or more in total contract value, including two $20 million and one $40 million deals, the large deal victories were widely distributed.

“Our pipeline is definitely higher than what it was the same time last year, and sequentially, and we are negotiating a couple of good sized deals with clients right now, mainly in the software-defined vehicles space,” said Chadha.

All of the significant deals that were started in Q3 and Q2 have already ramped up, he continued. He went on to say that there are no soft spots in verticals like plant engineering and transportation. Nonetheless, there are certain weak points in the hitech and industrial products segments.

“any industry product customer that we have that is connected to oil and gas is growing. But any industrial product customer that is connected to non-oil and gas sub-sectors is showing signs of slowing down their projects,” he said, adding that medical devices will grow slightly slower than transportation and plant engineering verticals.

Profit increased sequentially by 6.6 percent. With revenue of Rs 2,422 crore for the quarter, it increased 1.5 percent sequentially and 12.3 percent YoY.

Compared to the previous quarter, when attrition was 16.7 percent, it was 15.8 percent this quarter. According to Chadha, the company reduced headcount by 582 during the quarter as it increased utilization and did not replace departing talent with more "prudent" resources.

In addition, he mentioned that the corporation had begun visiting colleges and had hired about 500 freshmen, with the intention of making about 1,200 of the 2,000 offers it had set aside for the upcoming fiscal year. In addition, the company is employing in Baroda as part of the BP empanelment that was declared in Q3.

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