What is your quick view on the quarterly results announced by LTTS for Dec-21 quarter?
Answer
Answer
L&T Technology Services, or LTTS for short, reported 20.5% growth in sales at Rs.1,688 crore for the December 2021 quarter. LTTS is one of the 3 IT franchises of the L&T group; the other two being L&T Infotech and Mindtree. LTTS operates as a pure play engineering services provider. LTTS showed 18% growth in dollar revenues in the quarter at $225 million. It has also declared a dividend of Rs.10 per share to shareholders.
In terms of future potential, the LTTS model is betting big on EACV (electric autonomous and connected vehicles) to become the growth vehicle for the future. The existing franchises of EACV and the Medtech segments showed the best traction in top line and bottom line growth. Incidentally, during the current quarter LTTS had secured a massive $45 million deal. In addition, the company had closed 3 deals in the quarter with TCV above $10 million.
Net Profits for the Dec-21 quarter for LTTS was up 33.69% at Rs.249 crore. The profit growth was triggered by the 340 bps expansion in the EBIT margins at 18.6%. LTTS reported a very strong digital franchise accounting for 56% of revenues. PAT margins increased from 13.29% in Dec-20 quarter to 14.74% in Dec-21 quarter.