NE BUSINESS BUREAU
MUMBAI, MAY 16
L&T Technology Services, the engineering and research-focused subsidiary of the infra major, on Friday reported a 7 percent increase in March quarter’s net profit at Rs 204.8 crore and hinted at some potential difficulties in FY21 due to the COVID-19 pandemic, said a company spokesman.
The company’s revenue grew 8 percent to Rs 1,446.6 crore during the reporting quarter.
For the full fiscal year FY20, its profit grew 8 percent to Rs 818.6 crore.
The operating profit margin expanded 50 basis points to 16.5 percent during FY20.
During the reporting quarter, there were nine multi-million dollar deal wins with one in the range of USD 30 million, while it has signed two more since April having a collective value of over USD 45 million.
It’s chief executive and managing director Keshab Panda said that there may be a few quarters where it may face difficulties on the revenue front because of the unprecedented crisis, but declined to give any specific guidance for FY21.
He said that many clients have sought furloughs because of liquidity issues that they have been facing, but underlined that the company looks at the period of turbulence as an opportunity.
He said over 93 per cent of the company’s 17,000-strong staff is working from home since the crisis set in March, and the company will look at continuing with the practice for some of them even after the crisis ends.
For some staffers, lab interaction is the only issue with work from home, and the company is looking at ways of working around that.
Panda said while the business related to the oil sector will find it a difficult year, medical technologies and telecom should do well.
The company, which had over Rs 800 crore in cash as on March 31, will also look at mergers and acquisitions, he said.
The company added 96 employees during the quarter to take its total strength to 16,883 people and will continue to do away with low performers, Panda said, stressing that any removals will not be linked to COVID-19.
He said the company plans to go ahead with hiring young engineers from campuses.
