L&T Technology Services (LTTS) on Thursday reported a marginal 0.2 per cent rise in net profit at ₹340 crore for the March quarter due to slow revenue growth and margin erosion.The company said it Planning to add 500 employees.
The engineering services company’s net profit for FY24 rose 7.6 per cent to ₹1,303.7 crore. In the quarter under review, its revenue rose 7 per cent to ₹2,537.5 crore, up nearly 5 per cent from the previous quarter. LTTS Managing Director And Chief Executive Amit Chadha said revenue was higher than the year-ago period due to gains from acquired company Smart World. On the margin front, he guided towards a “slightly lower” number in the near term as it increases investment
Which he considers important for the future. He said that the company has earlier been reporting operating profit margin of 17-18 percent, but due to investment this level may come down. For the quarter under review, the operating profit margin came in at 16.9 percent, While it was 17.9 percent in the year-ago period and 17.2 percent in the quarter-ago period. He said the investment would be in software-defined vehicles, hybridization or electric vehicles, artificial intelligence, cyber security, embedded systems and hyperscaler technologies. However, Chadha said there is no pressure on the company on the pricing front.
He also announced the restructuring of the organization, under which the number of business areas has been reduced from the earlier five to three. These are mobility, sustainability and high technology, he said, work on this was going on for the last 3-6 weeks. And it also includes some changes in structure. Chadha said the company has added about 800 employees over the past year to take its total headcount to 23,812 and added 500 people on a net basis in the first quarter of the fiscal year. Will go.
