L&T Technology Services Q3 PAT down 9.2% yoy at Rs186.9cr

L&T Technology Services Q3 PAT down 9.2% yoy at Rs186.9cr

L&T Technology Services reported -1.56% fall yoy in Dec-20 quarter consolidated revenues at Rs1,400.70cr. The company reported fall in top line revenues across key verticals like Transportation and Plant Engineering. However, revenues from medical devices and telecom & hi-tech were up on a yoy basis, that partially compensated.

For the Dec-20 quarter, the consolidated operating profits were down -10.83% at Rs213.20cr. This was on the back of higher manpower expenses although this partially compensated by better control over other expenses. As a result, the operating margin or OPM contracted from 16.80% in the Dec-19 quarter to 15.22% in Dec-20 quarter.

Consolidated Profit after tax (PAT) for the Dec-20 quarter was lower by -9.18% at Rs186.90cr on lower operating metrics despite mildly lower tax outgo. PAT margins also contracted from 14.46% in Dec-19 to 13.34% in Dec-20.

Financial highlights for Dec-20 compared yoy and sequentially

L&T Technology Services
Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 1,400.70 ₹ 1,422.90 -1.56% ₹ 1,313.80 6.61%
Operating Profit (Rs cr) ₹ 213.20 ₹ 239.10 -10.83% ₹ 180.10 18.38%
Net Profit (Rs cr) ₹ 186.90 ₹ 205.80 -9.18% ₹ 166.30 12.39%

Diluted EPS (Rs) ₹ 17.63 ₹ 19.34 ₹ 15.69
OPM 15.22% 16.80% 13.71%
Net Margins 13.34% 14.46% 12.66%

Key takeaways from the Dec-20 quarter results

  • In dollar terms, LTTS reported 6.8% growth in revenues on a sequential basis and 12.4% growth in dollar profits. During the Dec-20 quarter, LTTS won 7 contracts of value exceeding $10 million each.

  • In terms of verticals, 30% of revenues were accounted by the transport sector followed by Telecom & hi-tech at 23% and industrial products at 19.3%. Plant engineering contributed 14.7% in the quarter while medical devices accounted for the balance 12.7% in total revenues in the quarter.

  • In terms of Geographies, North America remains the biggest market giving 61.2% of revenues in the latest Dec-20 quarter. Europe accounts for 16.1% while India accounts for 13.9% of total revenues. In the latest quarter, the offshore : onsite ratio has improved favourably to 57.1 : 42.9.