L&T Technology Services reported a 5.3 per cent increase in consolidated net profit to Rs 262 crore in Q4 March 2022, on a 4.1 per cent increase in revenue to Rs 1756.10 crore. The company's consolidated net profit and revenue increased by 34.7 per cent and 21.9 per cent, respectively, in Q4 March 2021.
In Q4 FY22, EBITDA increased by 3.5 per cent quarter on quarter (QoQ) and 29.8 per cent year on year (YoY) to Rs 380.40 crore. In Q4 FY22, the EBITDA margin was 21.7 per cent, down from 21.8 per cent in Q3 FY22 and 20.3 per cent in Q4 FY21.
The company reported revenue of $232 million for the quarter, up 3.1 per cent sequentially and 17.5 per cent year over year. In constant currency, it increased by 3.6 per cent quarter over quarter and 19.4 per cent year over year.
LTTS said it has won a $100 million-plus deal, a $25 million-plus deal, and four other deals with a total contract value (TCV) of at least $10 million during the quarter. Digital and cutting-edge technology revenues accounted for 57% of total revenue during the quarter.
The company's net income for the fiscal year ended March 2022 (FY22) was Rs 957 crore, a 44.3 per cent increase over the previous fiscal year. Revenues totalled Rs 6569.70 crore for the year, a 20.6 per cent increase over the previous year. In dollar terms, it reported revenue of $880 million for the year, a 19.5 per cent increase over the previous year. LTTS reported a 20% increase in constant currency.
The board recommended that shareholders receive a final dividend of Rs 15 per share. At the end of Q4FY22, LTTS employed 20,861. At the end of the quarter, the trailing 12-month attrition rate was 20.4 per cent, up from 17.5 per cent in Q3 FY22 and 12.2 per cent in Q4 FY21.
At the end of Q4FY22, L&T Technology Services had an 868-patent portfolio, of which 605 were co-authored with customers and the remainder were filed by LTTS.
“Our FY22 performance was strong across the six dimensions of our strategy. We achieved a dollar revenue growth of 20% in constant currency for the year, with double-digit growth at each of our 5 segments and 20% plus growth at Transportation, Industrial Products and Plant Engineering,” said Amit Chadha, CEO & Managing Director, LTTS.
“Digital and leading-edge technologies have been a growth driver and differentiator for us, and its contribution inched up to 56% in FY22. Technology quotient improved with patent filings by our engineers rising to 98 which is more than three times that of the previous year. With better quality of growth and improvement in operating metrics, we were able to improve EBIT margins to 18.3% for the year – an improvement of 380 bps,” Chadha explained.
Chadha stressed: “We are making very good progress across our six bets; in Q4, we won a $100 million-plus deal in the EACV space – being chosen as the strategic engineering partner for a new age electric VTOL (Vertical Takeoff and Landing) aircraft program. With this deal, we have been able to extend our EACV success at Auto and Trucks & Off-Highway segments, to Aerospace, reflecting our multi-domain engineering and technology track record and expertise.”
“Deal bookings continue to be strong with a total of 6 deals more than $10 million won in Q4, that includes a $100 million-plus deal in EACV and another $25 million-plus deal. We see a healthy deal pipeline and demand environment across segments. Our FY23 guidance is for a dollar revenue growth of 13.5-15.5%,” he said.