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Informist, Thursday, Jul 18, 2024

 

--L&T Tech Apr-Jun consol net profit 3.14 bln rupees

--Analysts saw L&T Tech Apr-Jun consol net profit 3.25 bln rupees

--L&T Tech Apr-Jun consol PAT 3.14 bln rupees vs 3.41 bln qtr ago

--L&T Tech Apr-Jun consol revenue 24.62 bln rupee vs 25.38 bln qtr ago

--L&T Tech: Apr-Jun EBIT margin 15.6%

--L&T Tech: Employee strength 23,577 as of Jun 30

--L&T Tech: Apr-Jun revenue down 3.1% QoQ in constant currency

--L&T Tech: Apr-Jun consol EBITDA 4.56 bln rupees, down 9.3% on qtr

--L&T Tech: Apr-Jun consol EBITDA margin 18.5% vs 19.8% qtr ago

--L&T Tech: Sustainability revenue down 3% on-quarter in Apr-Jun

--L&T Tech: Mobility revenue up 6.4% on-quarter in Apr-Jun

--L&T Tech: Hi-tech revenue down 11.6% on quarter in Apr-Jun

--L&T Tech: North America revenue down 4.6% on quarter in Apr-Jun

--L&T Tech: India revenue down 10.2% on quarter in Apr-Jun

--L&T Tech: Europe revenue up 10.6% on quarter in Apr-Jun

--L&T Tech: Rest of world revenue down 0.6% on quarter in Apr-Jun

 

By Rajesh Gajra

 

MUMBAI – L&T Technology Services Ltd missed Street estimates on both revenue and net profit for the quarter ended June with the extent of weakness coming as a surprise. Sequentially, the company's revenue fell in two of the three verticals and three of the four geographies it operates in.

 

The company's consolidated net profit fell 8.0% sequentially to 3.14 bln rupees and was below analysts' estimate of 3.25 bln rupees. The revenue from operations declined 3.0% on quarter to 24.62 bln rupees, below the Street estimate of 25.22 bln rupees. On an annual basis, net profit rose 0.8% and revenue increased 7.0%.

 

The sequential fall in net profit in the June quarter was the first in five quarters and topline was the first in six quarters, data from Informist Credit Standard showed.

 

In constant currency terms, L&T Technology's revenue was down 3.1% in Apr-Jun from a quarter ago and up 6.1% from a year ago. 

Mobility was the only vertical of the technology solutions company to see revenue growth in the June quarter. The revenue of the vertical, which accounted for 35.2% of total revenue, increased by 6.4% from a quarter ago.

 

The company's topline was dragged down by the decline in the remaining two verticals – sustainability and hi-tech. The Sustainability segment, which had a revenue share of 30.0%, recorded a 3?cline sequentially. The hi-tech segment, which makes up 34.8% of the total revenue, recorded the steepest fall. The segment's revenue in Apr-Jun fell 11.6% from the previous quarter.

 

Revenue from North American clients declined 4.6% sequentially in Apr-Jun, while that from India fell 10.2%. North America accounted for 52.9% of the company's total revenue and India for 22%.

 

The revenue of the rest of the world, which accounts for 7% of total revenue, declined 0.6% sequentially. The only bright spot was Europe, where the company's revenue recorded a 10.6% increase. Europe accounted for 18.1% of the company's revenue.

 

L&T Technology's operating profit, as denoted by the earnings before interest, tax, depreciation, and amortisation, was hit by the revenue de-growth as well as a sharp increase in selling, general and administration expenses, according to data from the company's investor presentation. The company's EBITDA fell 9.3% on quarter to 4.56 bln rupees in Apr-Jun, with the selling, general and administration expenses rising 15.5% to 2.65 bln rupees. The EBITDA margin contracted to 18.5% from 19.8% a quarter ago.

 

The earnings before interest and tax fell 10.4% sequentially with the margin contracting to 15.6% from 16.9%. However, the gross profit declined by just 1.5% to 7.22 bln rupees due to a 3.6?cline in cost of sales to 17.4 bln rupees.  

 

The company said during the June quarter it won seven big deals, comprising two $30 mln deals, two $15 mln deals and three $10 mln deals. L&T Technology, a subsidiary of Larsen & Toubro, saw its employee strength decline to 23,577 at the end of June quarter from 23,812 in the previous quarter.

 

Today, shares of L&T Technology ended 0.4% lower at 4,849.95 rupees on the National Stock Exchange.  End

 

US$1 = 83.65 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

 

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