Shares of the subsidiary of the country's largest infrastructure developer - Larsen & Toubro - L&T Technology Services rose as much as 16 per cent hit record high of Rs 3,366 after it reported June quarter earnings. L&T Technology Services' net profit in the first quarter of current financial year jumped 84 per cent to Rs 216 crore compared with Rs 117 crore during the same quarter last year. Its revenue from operations advanced 17 per cent to Rs 1,518 crore as against Rs 1,295 crore in the year ago period.
Its revenue in dollar terms advanced 20 per cent to $205.7 million. Its EBIT margin also known as operating profit margin improved 520 basis points to 17.3 per cent.
"During the quarter, L&T Technology Services won six deals with total contract value (TCV) of $10 million plus, which includes two $25 million plus deals. Revenues from digital and leading-edge technologies stood at 54 per cent during the quarter," L&T Technology Services said in a press release.
"We started the new fiscal with a strong performance, despite the pandemic related challenges during the quarter. In Q1, we got our revenue back on the double-digit growth trajectory and marked four consecutive quarters of operating margin improvement. The deal pipeline is healthy across segments, and we expect broad based growth to continue. Our innovation engine is matching the pace of our growth as we filed a record 23 patents in Q1," Amit Chadha, CEO and Managing Director, L&T Technology Services, said in a statement.
Following strong results posted by L&T Technology Services, shares of its parent company Larsen & Toubro rose over 4 per cent to Rs 1,610 and shares of another L&T group company - L&T Infotech jumped 3.2 per cent to Rs 4,355.
As of 10:31 am, L&T Technology Services shares were trading 15 per cent higher at Rs 3,335, outperforming the Sensex which was up 0.3 per cent.