L&T Technology Services (LTTS) on Thursday reported a marginal 0.2 per cent growth in net profit for the March quarter at ₹340 crore on slower revenue growth and narrowing of margins.
The company said it is planning to add 500 employees during the April-June period.
The engineering services company’s net profit for FY24 grew 7.6 per cent to ₹1,303.7 crore.
In the reporting quarter, its revenue grew 7 per cent to ₹2,537.5 crore, while it was about 5 per cent higher when compared to the quarter-ago period.
LTTS Managing Director and Chief Executive Amit Chadha said the revenues in the year-ago period were higher because of the gains coming out of the acquired company, Smart World.
On the margin front, he guided towards a “slightly muted” number in the near-term as it ramps up investments on areas it considers critical for the future.
He said the company has been reporting the operating profit margin at 17-18 per cent in the past, but the level may get compressed due to investments.
For the quarter under review, the operating profit margin came at 16.9 per cent as against 17.9 per cent in the year-ago period and 17.2 per cent in the quarter-ago period.
The investments will be in software-defined vehicles, hybridisation or electric vehicles, artificial intelligence, cyber security, embedded systems and hyperscaler technologies, he said.
Chadha, however, said there are no pressures on the pricing front being experienced by the company.
He also announced a restructuring of the organisation, under which it has narrowed down the number of business verticals to three from the earlier five.
These are mobility, sustainability and high tech, he said, adding that work on the same was on for the last 3-6 weeks, and it also involves some changes in the structure.
The company added nearly 800 employees to its rolls in the last one year to take the overall headcount to 23,812 people, and will be adding 500 people on a net basis in the first quarter of the fiscal, Chadha said.
It will add a similar number of people in the new fiscal, he said, adding that this will include both freshers and lateral hires.
During the quarter, LTTS signed a USD 100 million (about ₹800 crore), one USD 30 million (about ₹250 crore) and two deals each of USD 20 million (about ₹166 crore) and USD 10 million (about ₹83 crore).
The LTTS scrip closed 0.97 per cent down at ₹5,180.95 apiece on the BSE, as against gains of 0.66 per cent on the benchmark.
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Published: 25 Apr 2024, 08:53 PM IST