BENGALURU, July 14 (Reuters) – India’s L&T Technology Services, an engineering research and development firm, posted an 11.5% rise in quarterly consolidated revenue on Tuesday, supported by robust client spending in its sustainability segment.
The company had said in March it would sell its smart world and communication business, which included telecom and cybersecurity, to sharpen focus on manufacturing, industrial and technology-led sectors.
Here are some details:
• The company reported consolidated revenue of 29.4 billion rupees ($305.61 million) for the quarter ended June 30, compared with 26.37 billion rupees a year ago.
• Net profit was up 13% at 3.57 billion rupees.
• Revenue in constant currency, or stripping out exchange-rate effects, was up 1.9% year-on-year.
• The sustainability segment, which comprises industrial products and plant engineering, grew 11.3% during the quarter.
• A weak rupee also helped as most clients are billed in foreign currencies while incurring most costs in rupees.
• Revenue from North America, which accounts for more than half of the company’s overall revenue, grew 3.3%.
• ER&D firms largely rely on businesses from automotive and aerospace clients in the U.S and Europe, which have been impacted by geopolitical uncertainties, leading to weak demand and slower recovery in global EV R&D spending.
• The company’s mobility unit, from which it derives a third of its revenue, grew 0.8%, while revenue from its tech segment fell 10.6%.
• Revenue from Europe and India declined.
• The company said it has partnered with Anthropic to leverage Claude for delivering products, services and industrial solutions to clients.
($1 = 96.2000 Indian rupees)
(Reporting by Haripriya Suresh in Bengaluru; Editing by Shilpi Majumdar)
