L&T Tech Q1 Results: Revenue Slips 4%, Profit Meets Estimates
Larsen & Toubro (L&T) Technology Services Ltd., a leading IT services and digital solutions company, has announced its financial results for the quarter ended June 2022. The company’s revenue slipped 4% to Rs 2,866 crore, while its profit met expectations.
The decline in revenue was primarily due to a 3.9% fall in sales to Rs 2,866 crore, which was lower than the Rs 2,931-crore consensus estimate of analysts tracked by Bloomberg. However, the company’s net profit rose 2% to Rs 316.1 crore, meeting expectations.
Q1 Performance Overview
L&T Technology Services Ltd. reported a steady performance in the first quarter of financial year 2023, driven by continued momentum in large deals and a growing focus on AI-led innovation. The company’s revenue in constant currency terms declined 4.2% sequentially but grew 12.8% on an annual basis.
The company’s EBIT (Earnings Before Interest and Taxes) margin stood at 13.3%, down from 13.6% in the previous quarter. Net profit margins remained stable at 11.1%.
Key Highlights
• Revenue: Rs 2,866 crore, down 3.9% from the previous quarter and up 13.6% from the same quarter last year.
• EBIT: Rs 381.3 crore, down 3% from the previous quarter.
• Net profit: Rs 316.1 crore, up 2% from the previous quarter.
• EBIT margin: 13.3%, down from 13.6% in the previous quarter.
• Net profit margin: 11.1%, stable from the previous quarter.
CEO’s Comments
L&T Technology Services Ltd. CEO Amit Chadha expressed optimism about the company’s performance, saying, ‘We expect to clock double-digit growth in financial year 2023 and maintain our medium-term outlook of $2 billion in revenue.’ He also highlighted the company’s focus on AI-led innovation and its growing patent portfolio.
Future Outlook
L&T Technology Services Ltd. is expected to continue its focus on AI-led innovation and digital transformation, which is driving client engagements and deal wins. The company’s patent portfolio stood at 1,550, with 952 co-authored with clients, as of the end of the first quarter. The company’s employee base has reached 23,626.
In conclusion, L&T Technology Services Ltd.’s Q1 results were mildly disappointing, but the company’s focus on AI-led innovation and digital transformation is expected to drive growth in the future.
What’s Next?
The company is expected to announce its Q2 results in October 2022. Investors will be keenly watching the company’s performance, particularly its revenue growth and margin expansion. We will provide an update on the company’s performance and any significant developments in the future.
Conclusion
L&T Technology Services Ltd.’s Q1 results were a mixed bag, with revenue slipping 4% but profit meeting expectations. The company’s focus on AI-led innovation and digital transformation is expected to drive growth in the future. We will continue to monitor the company’s performance and provide updates on any significant developments.
