India's L&T Technology posts 13% rise in Q1 profit on order boost
BENGALURU (Reuters) - Indian engineering research and development provider L&T Technology Services reported a nearly 13% rise in first-quarter profit on Tuesday, aided by strong order wins.
The company's consolidated net profit rose to 3.11 billion rupees ($37.91 million) for the three months ended June 30, from 2.76 billion rupees, a year ago.
During the quarter, the company won a deal worth over $50 million and five deals worth more than $10 million each, and partnered with state-owned Bharat Sanchar Nigam Limited (BSNL) to deploy private 5G network for enterprise customers.
Amit Chadha, the Chief Executive Officer said the company's customers continue to spend on transformational technologies and are seeking engineering research and development partners.
Chadha's comments come as larger IT service providers such as Tata Consultancy Services, HCLTech and Wipro flagged a slowing deal momentum amid a cut in discretionary spending by clients.
Separately, L&T Tech on Tuesday reported winning a $50 million hi-tech deal for a global tech company for a period of five years.
L&T Tech's consolidated revenue from operations for the quarter rose 14.7% to 23.01 billion rupees. Transportation, the largest segment contributing about 33% to total revenue, posted a 21.1% jump in revenue for the period.
Total expenses rose by about 15% as employee-related and other costs increased, while earnings before interest and taxes (EBIT) margin contracted to 17.2% in the quarter from 17.4%, a year ago.
($1 = 82.0346 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; editing by Eileen Soreng)
