L&T Technology Services on April 26 has recorded around 2 percent sequential growth in consolidated profit at Rs 309.6 crore for the quarter ended March FY23, meeting analysts' expectations.
Revenue from operations for the quarter at Rs 2,096.2 crore increased by 2.3 percent over the previous quarter.
Revenue in dollar terms increased by 2.8 percent QoQ to $255.1 million and the same in constant currency grew 2.2 percent, which came in a tad above CNBC-TV18 poll estimates that pegged them at 1.8 percent and 2.4 percent growth, respectively.
In Q4, "four of our five segments grew more than 4 percent sequentially with medical and plant engineering segments leading the growth," Amit Chadha, CEO & Managing Director said.
He further said deal wins were healthy with one $40 million-plus deal and three $10-million TCV (total contract value) deals. LTTS won deals worth $70 million in Q4 FY23.
On the geography front, the growth was driven by Europe (up 5.2 percent QoQ), India (15 percent), and the Rest of World (10.6 percent), but North America business posted a 1.4 percent decline on sequential basis.
Operating performance was also tad above analysts' estimates. EBIT (earnings before interest and tax) grew by 2.6 percent sequentially to Rs 392.7 crore for the March FY23 quarter, with margin remaining steady at 18.7 percent. The average estimates of analysts polled by CNBC-TV18 for EBIT were Rs 388 crore and a margin of 18.6 percent for the quarter.
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L&T Technology has recorded a massive 22-percent growth both in net profit as well as revenue for the full year at Rs 1,169.8 crore and Rs 8,013.6 crore, respectively, compared to previous year. The revenue, in dollar terms, grew by 12.4 percent and 15.8 percent in constant currency terms.
"The diversified industry presence has enabled us to grow revenues consistently. The 16-percent constant currency growth for the year was driven by an industry leading 22 percent at transportation and double-digit growth at plant engineering and industrial products," Amit Chadha said.
He further said the annual EBIT margin was the highest ever at 18.5 percent (against 18.3 percent in FY22), driven by a strong focus on building a robust and sustainable operating model.
The combination of steady growth and expanding operating margin has led to an 18 percent CAGR in profits over the last 5 years, he added.
For FY24, Chadha said the guidance was for a USD constant currency revenue growth of 20 percent plus (10 percent plus organic growth).
L&T Technology has announced a final dividend of Rs 30 per share for the financial year 2022-23.
Meanwhile, the board has appointed Aruna Sundararajan as independent director for five years and Alind Saxena as Whole-time Director for three years, with effect from April 26.