Mid-tier engineering technology services firm Larsen & Toubro Technology Services (LTTS) has reported a 7% year-on-year rise in net profit to Rs 205 crore for the quarter ended March 31, 2020.
In terms of revenue, the Vadodara headquartered firm saw an 8% growth to Rs 1,447 crore for the fourth quarter of the financial year, compared to the corresponding period a year ago.
For the full financial year, the company witnessed an 11% growth to Rs 5,619 crore in revenue compared to the previous financial year. Its FY20 net profit stood at Rs 819 crore, a 7% increase from FY19.
In the past year, the firm won nine multi-million dollar deals across major industry segments, including one valued at more than $30 million, as per a statement. The L&T subsidiary also signed three deals worth more than $20 million and five valued over $10 million in the same period, it added.
During Q4, the company saw its margin improve by 50 basis points to 16.5%. At the end of FY20, it employed close to 17,000 people.
The near-term outlook for the world economy appears uncertain as a result of the fallout from the global pandemic, according to CEO and managing director Keshab Panda.
“We see this crisis accelerating the trend of customers seeking credible partners who bring capability and speed-to-market. We believe this will lead to greater consolidation and enable us to expand engagement scopes once customers adjust and re-draw their business plans under a new normal,” Panda said.
LTTS did not specify the impact of the Covid-19 lockdown on its April-June quarter earnings.
The $190 billion Indian IT services industry, on the whole, is expected to see a decline for the first time, despite top-tier firms being optimistic about recovery during the second half of the current financial year.
Last week, technology research firm Gartner said that companies across the world will cut expenditure on IT by 8% in 2020, with the overall IT budget expected to fall to $3.4 trillion due to the Covid-19 crisis. This is in contrast to its January prediction, when the firm had projected that IT spending would grow to $3.9 trillion globally in 2020.
In light of the pandemic, LTTS has also rolled out a suite of digital offerings to enable safe workplaces and frugal manufacturing processes to help enterprises transfer or prioritise their manufacturing and production lines, Panda said.
Separately, Amit Chadha was elevated to the position of deputy CEO and whole-time director from the beginning of this financial year. He was earlier the president of sales and business development at the firm.
In March this year, the firm signed a multi-year memorandum of understanding (MoU) with IIT Kanpur to collaborate on research in industrial and infrastructure cybersecurity spaces.