MUMBAI: A one-time income from an asset sale helped L&T Technology
Services
today report Rs 197 crore in net profit for the June quarter, which is nearly double the profit it had reported in the same period last fiscal year.
The L&T group company reported a 40 per cent rise in revenue at Rs 1,152 crore in the reporting quarter.
The bottom line got a Rs 78 crore boost from a deal its wholly-owned subsidiary Esencia
Technologies
had entered into with a client, the company said.
Managing director and chief executive Keshab Panda said the company is on track to achieve the 16 per cent revenue growth guidance for the fiscal.
Revenue is growing largely on the company's ability to extract higher billing from same clients, he said, adding two clients have grown to deliver over USD 50 million of revenue per year.
The share of revenue from the new and upcoming fields of digital and Internet of Things grew 80 per cent and now occupies 31 per cent of the overall pie.
Panda said growth in such revenue is essential in this space and hoped that the contribution will continue to grow.
Asked if such businesses are difficult from a margin perspective, he replied in the negative.
He said its operational margin has expanded to 17 per cent in the reporting quarter from 16.1 per cent in the preceding quarter and 15.6 per cent for FY18.
Panda said the company has a slew of margin drivers including higher utilisation levels and also designing newer revenue models for the clients, which can help expand the crucial number.
It hired a net of over 700 employees during the quarter to take its overall strength to above 13,000.
Panda said they are hiring to acquire newer talents and prefer freshers over the laterals.
The company scrip gained 1.16 per cent to close at Rs 1,306.55 on BSE as against a 0.61 per cent gain on the benchmark.
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