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L&T Technology Services Limited — Interim / Quarterly Report 2021
Oct 19, 2021
59063_rns_2021-10-19_2568a0a2-f0fb-497b-9427-6bb58c130c50.pdf
Interim / Quarterly Report
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L&T Technology Services Limited L&T Business Park, TC 2 Tower B, Second floor, North East Wing, Gate no.5, Saki Vihar Road, Powai, Mumbai – 400072 www.ltts.com
October 19, 2021
National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex Bandra (East), Mumbai – 400 051. NSE Symbol: LTTS
The BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001 BSE Script Code: 540115
Subject: Outcome of Board Meeting as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ref: Our letter dated October 1, 2021
Dear Sirs,
We would like to inform that pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company at their meeting held today, i.e. October 19, 2021, have approved and taken on record the Unaudited Consolidated and Standalone Financial Results of the Company, for the quarter and half year ended September 30, 2021. The Board Meeting commenced at 4.00 p.m. and concluded at 5.45 p.m., we attach herewith the following
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Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2021 along with the Limited Review Report thereon.
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Press Release and Investor Release w.r.t. Financial Results for the quarter ended September 30, 2021.
Special Dividend:
The Board of Directors have also declared a Special Dividend of Rs. 10/- per equity share.
The Special Dividend shall be paid to equity shareholders of the Company whose names will appear in the Register of Members or in the records of the Depositories as Beneficial Owners of Equity shares as on Wednesday, October 27, 2021 which is the Record Date fixed for the aforesaid purpose.
Tax Deductible at Source on Dividend:
Pursuant to Finance Act, 2020, dividend income will be taxable in the hands of the shareholders with effect from April 1, 2020. Hence, the special dividend declared by Board shall be paid after deducting tax at source (‘TDS’) in accordance with the provisions of the Income Tax Act, 1961. Members are requested to submit all requisite documents on or before October 26, 2021, to enable the Company to determine the appropriate TDS rates, as applicable.
The Special Dividend will be paid/dispatched on or before November 10, 2021.
Registered Office: L&T House, N. M. Marg, Ballard Estate, Mumbai - 400 001. INDIA, Tel: +91 22 6752 5656 Fax: +91 22 6752 5893 CIN : L72900MH2012PLC232169
L&T Technology Services is a subsidiary of Larsen & Toubro Limited
L&T Technology Services Limited L&T Business Park, TC 2 Tower B, Second floor, North East Wing, Gate no.5, Saki Vihar Road, Powai, Mumbai – 400072 www.ltts.com
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Appointment of Independent Director:
Pursuant to Regulation 30 read with Schedule III Part A Para A (7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and based on recommendation of Nomination & Remuneration Committee, the Board has appointed Mr. Luis Miranda (DIN: 01055493) as the Independent Director of the Company for a term of five years with effect from October 19, 2021 till October 18, 2026, subject to the approval of the shareholders.
The brief profile of Mr. Luis Miranda is attached herewith as Annexure A. We further affirm that Mr. Luis Miranda is not debarred from holding the office of director by virtue of any SEBI order or any other such authority.
The above Director is not related to any existing Directors.
Superannuation of Company Secretary:
Pursuant to Regulation 30 of the LODR Regulations, on attaining superannuation, Mr. Kapil Bhalla, Company Secretary & Compliance officer will superannuate from the position of the Company Secretary w.e.f close of working hours on October 29, 2021. The resultant vacancy shall be filled by the Board of Directors within the prescribed time limit.
The above information is also available on the website of the Company. Kindly take the above information on record and acknowledge the receipt of the same.
Thanking You,
Yours sincerely,
For L&T Technology Services Limited
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Rajeev Gupta Chief Financial Officer Encl: As above
Registered Office: L&T House, N. M. Marg, Ballard Estate, Mumbai - 400 001. INDIA, Tel: +91 22 6752 5656 Fax: +91 22 6752 5893 CIN : L72900MH2012PLC232169
L&T Technology Services is a subsidiary of Larsen & Toubro Limited
Brief Profile- Luis Miranda
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Luis Miranda is Chairman & Co-Founder of the Indian School of Public Policy. He is also Chairman of the Centre for Civil Society and CORO and a Co-Founder of Take Charge, a mentoring programme for Catholic youth in Mumbai.
Luis spends his time, with his wife, connecting dots; using their networks to help the organisations they are connected with. Fiona and Luis are also #LivingMyPromise signatories, where they have pledged to give away at least 50% of what they have to charity during their lives or in their wills. He is also on the board of Educate Girls and SBI
Foundation. Luis is Chairman of ManipalCigna Health Insurance and Senior Advisor at Morgan Stanley. He is a Trustee, University of Chicago Trust in India and a member of the Global Leaders Group and the Advisory Council of the Rustandy Center for Social Sector Innovation at Chicago Booth.
He has been involved in setting up 2 highly successful companies - HDFC Bank and IDFC Private Equity. HDFC Bank is India’s most valuable bank today. Luis stepped down as CEO of IDFC Private Equity in 2010. In 2009 IDFC Private Equity was awarded Best Private Equity Firm in India by Private Equity International and Asian Infrastructure Fund Manager of the Year by Infrastructure Investor.
Luis blogs for Forbes, Thrive Global and Spontaneous Order and teaches at the Accelerated Development Program of Chicago Booth. Luis received an MBA from the Booth School of Business at The University of Chicago and is a member of the Institute of Chartered Accountants of India.
SHARP & TANNAN Chartered Accountants
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Firm’s Registration No. 109982W
Independent Auditor’s review report on review of consolidated unaudited quarterly and year to date financial results of L&T Technology Services Limited pursuant to regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
The Board of Directors of L&T Technology Services Limited
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We have reviewed the accompanying statement of consolidated unaudited financial results of L&T Technology Services Limited (‘the Parent’) and its subsidiaries (the Parent and its subsidiaries together referred to as ‘the Group’) for the quarter and six months ended 30 September 2021 (‘the Statement’), being submitted by the Parent pursuant to the requirement of regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (the ‘Listing Regulations’).
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This Statement, which is the responsibility of the Parent's management and approved by the Parent’s Board of Directors, has been prepared in accordance with recognition and measurement principles laid down in Indian Accounting Standard 34 ‘Interim Financial Reporting’ (‘Ind AS 34’), as prescribed under section 133 of Companies Act, 2013 (‘the Act’), and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
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We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
- The Statement includes the results of the following entities:
| Sr. no. |
Entity name | Relationship |
|---|---|---|
| 1 | L&T TechnologyServices LLC(‘LTTS LLC’) | Whollyowned subsidiary |
| 2 | Esencia Technologies Inc. | Whollyowned subsidiaryof LTTS LLC |
| 3 | L&T TechnologyServices(Canada)Limited | Whollyowned subsidiaryof LTTS LLC |
| 4 | Orchestra Technology, Inc. | Whollyowned subsidiaryof LTTS LLC |
| 5 | Esencia Technologies India Private Limited | Whollyowned subsidiary |
Ravindra Annexe, 194, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai - 400 020, India. Tel. (22) 2204 7722/23, 2286 9900 Fax (22) 2286 9949 E-mail : [email protected] Shreedhar T. Kunte Ramnath D. Kare Edwin P. Augustine Raghunath P. Acharya Firdosh D. Buchia Tirtharaj A. Khot Pavan K. Aggarwal Also at Pune. Associate Offices : New Delhi, Chennai, Bangalore, Baroda, Goa & Ahmedabad
SHARP & TANNAN
SHEET NO::
_____
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| 6 | L&T Thales TechnologyServices Private Limited | Subsidiary |
|---|---|---|
| 7 | Graphene Semiconductor Services Private Limited | Whollyowned subsidiary |
| 8 | Graphene Solutions Pte. Ltd. | Whollyowned subsidiary |
| 9 | Graphene Solutions SDN. BHD. | Whollyowned subsidiary |
| 10 | Graphene Solutions Taiwan Limited | Whollyowned subsidiary |
| 11 | Seastar Labs Private Limited | Whollyowned subsidiary |
| 12 | L&T TechnologyServices(Shanghai)Co. Limited | Whollyowned subsidiary |
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Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
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We have not reviewed the unaudited interim financial results / financial information of one subsidiary, whose unaudited interim financial results / financial information reflect total assets of Rs. 5,598 million as on 30 September 2021, total revenue of Rs. 1,601 million and Rs. 3,003 million, total net profit after tax of Rs. 112 million and Rs. 229 million, total comprehensive income of Rs. 107 million and Rs. 277 million for the quarter and six months ended 30 September 2021, and cash outflows (net) of Rs. 52 million for the period from 1 April 2021 to 30 September 2021 as considered in the Statement. This subsidiary is located outside India and its unaudited interim financial results / financial information have been prepared in accordance with accounting policies generally accepted in that country (‘Local GAAP’) and which has been reviewed by its auditor, under generally accepted auditing standard applicable in that country, whose report has been furnished to us by the Parent’s management. The Parent’s management has converted the unaudited interim financial results / other financial information of such subsidiary located outside India from accounting principles generally accepted in their country to accounting principles generally accepted in India. We have reviewed these conversion adjustments made by the Parent’s management. Our conclusion on the Statement, in so far as it relates to the amounts and disclosure included in respect of this subsidiary is based solely on the report of the other auditor and conversion adjustment made by the Parent’s management and reviewed by us.
Our conclusion on the Statement is not modified in respect of the above matters.
- The Statement includes the unaudited interim financial results and other unaudited financial information of eleven subsidiaries, which have not been reviewed by their auditors, whose interim financial results reflect total assets of Rs. 1,593 million as on 30 September 2021, total revenue of Rs. 629 million and Rs. 1,201 million, total net loss after tax of Rs. 20 million and Rs. 1 million, total comprehensive income / (loss) of Rs. (22) million and Rs. 17 million for the for the quarter and six months ended 30 September 2021, and cash inflows (net) of Rs. 53 million, as considered in the Statement. According to information and explanation given to us by management, these interim financial results are not material to the Group.
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L&T Technology Services Limited
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai 400 001
CIN : L72900MH2012PLC232169
Consolidated audited statement of assets and liabilities as per regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016.
| ₹ Million | ₹ Million | ||
|---|---|---|---|
| A 1 2 B 1 2 3 Sr. No. |
Particulars | As at | As at |
| 30-09-2021 | 31-03-2021 | ||
| ASSETS Non-current assets (a) Property, plant and equipment (b) Right-of-use assets (c) Capital work-in-progress (d) Goodwill (e) Other Intangible assets (f) Financial assets (i) Investments (ii) Trade receivables (iii) Other financial assets (g) Deferred tax assets (net) (h)Other non-current assets |
2,169 4,391 93 5,850 617 - - 2,361 92 994 |
2,063 4,197 119 5,827 737 - - 1,644 67 1,049 |
|
| Total non-current assets | 16,567 | 15,703 | |
| Current assets (a) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Other bank balances (v) Loans (vi) Other financial assets (b)Other current assets |
11,872 14,895 3,179 4,532 - 2,045 3,056 |
15,149 12,346 1,751 576 - 1,685 3,519 |
|
| Total current assets | 39,579 | 35,026 | |
| TOTAL ASSETS | 56,146 | 50,729 | |
| EQUITY AND LIABILITIES Equity (a) Equity share capital (b)Other equity |
210 37,918 |
210 34,521 |
|
| Equity attributable to equity holders of the Company | 38,128 | 34,731 | |
| Non-controllinginterest | 118 | 101 | |
| Total equity | 38,246 | 34,832 | |
| Non-current liabilities (a) Financial liabilities (i) Lease liability (ii) Other financial liabilities (b)Deferred tax liabilities(net) |
4,242 291 662 |
4,015 322 578 |
|
| Total non-current liabilities | 5,195 | 4,915 | |
| Current liabilities (a) Financial liabilities (i) Borrowings (ii) Trade payables Due to micro enterprises and small enterprises Due to others (iii) Lease liability (iv) Other financial liabilities (b) Other current liabilities (c) Provisions (d)Current tax liabilities(net) |
- 29 1,335 818 3,819 4,610 1,492 602 |
- 66 2,286 790 2,827 2,958 1,584 471 |
|
| Total current liabilities | 12,705 | 10,982 | |
| TOTAL EQUITY AND LIABILITIES | 56,146 | 50,729 |
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L&T Technology Services Limited
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai 400 001
CIN : L72900MH2012PLC232169
Statement of consolidated unaudited financial results for the quarter and six months ended September 30, 2021
| ₹ Million | ₹ Million | ₹ Million | ₹ Million | ₹ Million | ₹ Million | ||
|---|---|---|---|---|---|---|---|
| 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Sr. No. |
Particulars | Quarter ended | Six months ended | Year ended | |||
| 30-09-2021 (Reviewed) |
30-06-2021 (Reviewed) |
30-09-2020 (Reviewed) |
30-09-2021 (Reviewed) |
30-09-2020 (Reviewed) |
31-03-2021 (Audited) |
||
| Income a) Revenue from operations b) Other income (net) Total income Expenses a) Employee benefit expenses b) Depreciation and amortisation expenses c) Other expenses d) Finance costs Total expenses Profit from ordinary activities after finance costs but before exceptional items (1-2) Exceptional items Profit from ordinary activities before tax (3-4) Tax expense Net profit from ordinary activities after tax (5-6) Extraordinary items (net of tax expense) Net profit for the period (7+8) Other comprehensive income (net of tax expense) Total comprehensive income (9+10) Net profit / (loss) attributable to : Shareholders of the Company Non-controlling interest Total comprehensive income attributable to : Shareholders of the Company Non-controlling interest Paid up equity share capital Face value per equity share (in Rs.) Other equity Earnings per equity share (Not annualised) a) Basic (in Rs.) b)Diluted(in Rs.) |
16,077 293 16,370 9,038 529 3,546 113 13,226 3,144 - 3,144 836 2,308 - 2,308 332 2,640 2,300 8 2,632 8 210 2 21.89 21.77 |
15,184 442 15,626 8,758 554 3,249 108 12,669 2,957 - 2,957 787 2,170 - 2,170 95 2,265 2,162 8 2,257 8 210 2 20.57 20.44 |
13,138 566 13,704 8,161 527 2,649 109 11,446 2,258 - 2,258 595 1,663 - 1,663 1,145 2,808 1,655 8 2,800 8 210 2 15.81 15.69 |
31,261 735 31,996 17,796 1,083 6,795 221 25,895 6,101 - 6,101 1,623 4,478 - 4,478 427 4,905 4,462 16 4,889 16 210 2 42.46 42.24 |
26,085 703 26,788 16,498 1,019 5,200 216 22,933 3,855 - 3,855 1,012 2,843 - 2,843 1,777 4,620 2,827 16 4,604 16 210 2 27.03 26.83 |
54,497 1,537 56,034 33,550 2,183 10,873 455 47,061 8,973 - 8,973 2,308 6,665 - 6,665 2,482 9,147 6,633 32 9,115 32 210 2 34,521 63.32 62.90 |
Statement of consolidated unaudited financial results for the quarter and six months ended September 30, 2021
| Sr. No. 1 2 |
Particulars | Quarter ended | Quarter ended | Quarter ended | Six months ended | Six months ended | Year ended |
|---|---|---|---|---|---|---|---|
| 30-09-2021 (Reviewed) |
30-06-2021 (Reviewed) |
30-09-2020 (Reviewed) |
30-09-2021 (Reviewed) |
30-09-2020 (Reviewed) |
31-03-2021 (Audited) |
||
| Segment revenue Transportation Plant Engineering Industrial Products Medical Devices Telecom & Hitech |
5,040 2,461 3,221 1,954 3,401 |
4,738 2,367 2,955 1,773 3,351 |
4,134 1,887 2,569 1,745 2,803 |
9,778 4,828 6,176 3,727 6,752 |
8,214 3,679 5,081 3,404 5,707 |
16,967 7,973 10,504 6,957 12,096 |
|
| Revenue from operations | 16,077 | 15,184 | 13,138 | 31,261 | 26,085 | 54,497 | |
| Segment results Transportation Plant Engineering Industrial Products Medical Devices Telecom & Hitech |
985 554 985 635 432 |
915 595 863 579 407 |
636 363 654 528 316 |
1,900 1,149 1,848 1,214 839 |
1,046 656 1,286 1,019 719 |
2,496 1,667 2,833 2,142 1,456 |
|
| Total results | 3,591 | 3,359 | 2,497 | 6,950 | 4,726 | 10,594 | |
| Less - Unallocable expenses (net) Add - Other income Less - Finance costs Less - Depreciation and amortisation expenses |
98 293 113 529 |
182 442 108 554 |
169 566 109 527 |
280 735 221 1,083 |
339 703 216 1,019 |
520 1,537 455 2,183 |
|
| Profit before tax | 3,144 | 2,957 | 2,258 | 6,101 | 3,855 | 8,973 |
Notes for segment information
a Segments have been identified in accordance with Indian Accounting Standards ("Ind AS") 108 on Operating Segments, considering the risk/return profiles of the business, their organisational structure and internal reporting systems.
b Property, plant and equipment used and liabilities contracted for performing the Company's business have not been identified to any of the above reported segments as the property, plant and equipment and services are used interchangeably among segments.
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L&T Technology Services Limited
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai 400 001
CIN : L72900MH2012PLC232169
Consolidated statement of Cash Flow as per regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016.
| ₹ Million | ₹ Million | ₹ Million | ||
|---|---|---|---|---|
| A B C Sr. No. |
Particulars | Six months ended |
Six months ended |
Year ended |
| September 30, | September 30, | March 31, | ||
| 2021 | 2020 | 2021 | ||
| Cash flow from operating activities Profit/(loss) before tax (excluding exceptional and extraordinary items) Adjustments for: Depreciation and amortisation Interest income Interest paid (Profit)/Loss on sale of Property, plant and equipment Employee stock option forming part of staff expenses Bad debts written off, allowances for bad and doubtful debts and ECL Investment income Unrealised foreign exchange loss/(gain) Operating profit before working capital changes Changes in working capital (Increase)/decrease in trade and other receivables Increase/(decrease) in trade and other payables (Increase)/decrease in working capital Cash generated from operations Direct taxes paid Net cash (used in)/from operating activities Cash flow from investing activities Purchase of property, plant and equipment and intangibles Sale of property, plant and equipment and intangibles Consideration paid on acquisition of subsidiaries (Purchase)/ sales of current investments (net) (Purchase)/ sales of non-current investments (net) Cash and cash equivalents acquired pursuant to acquisition of subsidiaries Deposits placed/loans given (net) - subsidiaries and third parties Income received from current investments Interest received Net cash (used in)/from investing activities Cash flow from financing activities Equity share capital issued Proceeds from/(repayment of) borrowings Interest paid Lease liability paid Dividend paid Dividend tax paid Net cash (used in) / from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the period/ year Cash and cash equivalents at end of theperiod/year |
6,101 1,083 (178) 221 (9) 32 103 (185) (41) 7,127 (2,737) 1,762 (975) 6,152 (1,539) 4,613 (403) 15 - 3,241 - - (3,879) 25 16 (985) - - (221) (425) (1,523) - (2,169) 1,459 1,725 3,184 |
3,855 1,019 (92) 216 (18) 90 31 (130) 483 5,454 2,807 (541) 2,266 7,720 (913) 6,807 (473) 6 - (4,055) (11) - 260 99 49 (4,125) 1 - (216) (415) (1,412) - (2,042) 640 2,133 2,773 |
8,973 2,183 (155) 455 (35) 126 (111) (315) 430 11,551 2,884 1,361 4,245 15,796 (2,523) 13,273 (771) 15 (795) (8,613) - 70 (315) 200 155 (10,054) 1 (287) (455) (688) (2,198) - (3,627) (408) 2,133 1,725 |
|
| Notes: 1 2 3 Cash and cash equivalents included in statement of cash flows comprise the following : Six months ended 30-09-2021 Six months ended 30-09-2020 Year ended 31-03-2021 a) Cash and cash equivalents disclosed under current assets 3,179 2,771 1,751 b) Other bank balances disclosed under current assets 4,532 2 576 c) Cash and cash equivalents disclosed under non-current assets 281 5 5 Total cash and cash equivalents as per balance sheet 7,992 2,778 2,332 Add: (i) Unrealised exchange (gain)/loss on cash and cash equivalents 5 2 (26) Less: (ii) Other bank balances disclosed under current assets 4,532 2 576 Less: (iii) Cash and cash equivalents disclosed under non-current assets 281 5 5 Total cash and cash equivalents as per statement of cash flows 3,184 2,773 1,725 Statement of cash flows has been prepared under the indirect method as set out in the Ind AS 7 "Statement of Cash Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015. Purchase of Property, plant and equipment and intangibles represents additions to property, plant and equipment and other intangible assets adjusted for movement of capital work-in-progress of (a) capital work-in-progress for property, plant and equipment and (b) intangible assets. |
Notes:
1 Statement of cash flows has been prepared under the indirect method as set out in the Ind AS 7 "Statement of Cash Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015.
-
2 Purchase of Property, plant and equipment and intangibles represents additions to property, plant and equipment and other intangible assets adjusted for movement of capital work-in-progress of (a) capital work-in-progress for property, plant and equipment and (b) intangible assets.
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3 Cash and cash equivalents included in statement of cash flows comprise the following :
| a) Cash and cash equivalents disclosed under current assets b) Other bank balances disclosed under current assets c) Cash and cash equivalents disclosed under non-current assets Total cash and cash equivalents as per balance sheet Add: (i) Unrealised exchange (gain)/loss on cash and cash equivalents Less: (ii) Other bank balances disclosed under current assets Less: (iii) Cash and cash equivalents disclosed under non-current assets Total cash and cash equivalents as per statement of cash flows |
Six months ended 30-09-2021 Six months ended 30-09-2020 Year ended 31-03-2021 3,179 2,771 1,751 4,532 2 576 281 5 5 7,992 2,778 2,332 |
|---|---|
| 5 2 (26) 4,532 2 576 281 5 5 |
|
| 3,184 2,773 1,725 |
Explanatory notes to the statement of consolidated unaudited financial results for the quarter and six months ended September 30, 2021
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The consolidated unaudited financial results for the quarter and six months ended September 30, 2021 have been taken on record by the Board of Directors at its meeting held on October 19, 2021. The statutory auditors have carried out limited review of the above consolidated unaudited financial results and have issued an unqualified limited review report. The results for the quarter and six months ended September 30, 2021 are extracted from the unaudited interim consolidated financial statements. These consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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The consolidated unaudited financial results are available on the website of the Company (www.ltts.com) and on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com). The specified items of the standalone unaudited financial results of the Company are given below:
| (₹ million) | ||||||
|---|---|---|---|---|---|---|
| Particulars | Quarter ended | Six months ended | Year ended | |||
| 30-09-2021 (Reviewed) |
30-06-2021 (Reviewed) |
30-09-2020 (Reviewed) |
30-09-2021 (Reviewed) |
30-09-2020 (Reviewed) |
31-03-2021 (Audited) |
|
| Total income | 14,770 | 14,176 | 12,838 | 28,946 | 24,828 | 51,383 |
| Profit before tax | 3,055 | 2,834 | 2,369 | 5,889 | 3,902 | 8,951 |
| Profit after tax | 2,251 | 2,086 | 1,789 | 4,337 | 2,927 | 6,731 |
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During quarter and six months ended September 30, 2021 the Company has allotted 1,22,000 and 1,32,979 equity shares of Rs. 2 each fully paid-up respectively on exercise of stock options by employees in accordance with the Company's stock option scheme.
-
The Board of Directors at its meeting held on October 19, 2021, has declared an special dividend of Rs.10 per equity share.
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Estimation uncertainty relating to COVID-19: The Group has considered internal and certain external sources of information including reliable credit reports, economic forecasts and industry reports up to the date of approval of the financial results in determining the impact on various elements of its financial results. The Group has used the principles of prudence in applying judgments, estimates and assumptions including sensitivity analysis and based on current estimates, the Group expects to fully recover the carrying amount of trade receivables including unbilled receivables, intangible assets, and investments. Management of the Group has also reviewed goodwill and is of the opinion that no impairment is required at present. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results.
6. Figures for earlier periods have been regrouped, wherever necessary.
Mumbai October 19, 2021
For and on behalf of the Board of Directors of L&T Technology Services Limited Amit Chadha Chief Executive Officer and Managing Director
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L&T Technology Services Limited
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai 400 001
CIN : L72900MH2012PLC232169
Standalone audited statement of assets and liabilities as per regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016.
₹ Million
| A 1 2 B 1 2 3 Sr. No. |
Particulars | As at | As at |
|---|---|---|---|
| 30-09-2021 | 31-03-2021 | ||
| ASSETS Non-current assets (a) Property, plant and equipment (b) Right-of-use assets (c) Capital work-in-progress (d) Goodwill (e) Other Intangible assets (f) Financial assets (i) Investments (ii) Trade receivables (iii) Other financial assets (g) Deferred tax assets (net) (h)Other non-current assets |
2,104 4,174 93 3,891 188 2,077 - 2,352 - 977 |
2,001 4,117 119 3,891 187 2,076 - 1,636 - 1,035 |
|
| Total non-current assets | 15,856 | 15,062 | |
| Current assets (a) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Other bank balances (v) Loans (vi) Other financial assets (b)Other current assets |
11,618 14,074 2,854 4,532 - 1,616 2,637 |
14,930 11,751 1,426 576 - 1,382 3,074 |
|
| Total current assets | 37,331 | 33,139 | |
| TOTAL ASSETS | 53,187 | 48,201 | |
| EQUITY AND LIABILITIES Equity (a) Equity share capital (b)Other equity |
210 36,427 |
210 33,191 |
|
| Total equity | 36,637 | 33,401 | |
| Non-current liabilities (a) Financial liabilities (i) Lease liability (ii) Other financial liabilities (b)Deferred tax liabilities(Net) |
4,051 176 629 |
3,956 207 530 |
|
| Total non-current liabilities | 4,856 | 4,693 | |
| Current liabilities (a) Financial liabilities (i) Short-term borrowings (ii) Trade payables Due to micro enterprises and small enterprises Due to others (iii) Lease liability (iv) Other financial liabilities (b) Other current liabilities (c) Provisions (d)Current tax liabilities(net) |
- 29 1,199 782 3,213 4,478 1,452 541 |
- 66 2,136 760 2,402 2,820 1,550 373 |
|
| Total current liabilities | 11,694 | 10,107 | |
| TOTAL EQUITY AND LIABILITIES | 53,187 | 48,201 |
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L&T Technology Services Limited
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai 400 001
CIN : L72900MH2012PLC232169
Statement of standalone unaudited financial results for the quarter and six months ended September 30, 2021
| ₹ Million | ₹ Million | ₹ Million | ₹ Million | ₹ Million | ₹ Million | ||
|---|---|---|---|---|---|---|---|
| 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Sr. No. |
Particulars | Quarter ended | Six months ended | Year ended | |||
| 30-09-2021 (Reviewed) |
30-06-2021 (Reviewed) |
30-09-2020 (Reviewed) |
30-09-2021 (Reviewed) |
30-09-2020 (Reviewed) |
31-03-2021 (Audited) |
||
| Income a) Revenue from operations b) Other income (net) Total income Expenses a) Employee benefit expenses b) Depreciation and amortisation expenses c) Other expenses d) Finance costs Total expenses Profit from ordinary activities after finance costs but before exceptional items (1-2) Exceptional items Profit from ordinary activities before tax (3-4) Tax expense Net profit from ordinary activities after tax (5-6) Extraordinary items (net of tax expense) Net profit for the period (7+8) Other comprehensive income (net of tax expense) Total comprehensive income (9+10) Paid up equity share capital Face value per equity share (in Rs.) Other equity Earnings per equity share (Not annualised) a) Basic (in Rs.) b)Diluted(in Rs.) |
14,473 297 14,770 7,925 454 3,235 101 11,715 3,055 - 3,055 804 2,251 - 2,251 336 2,587 210 2 21.41 21.30 |
13,727 449 14,176 7,737 461 3,046 98 11,342 2,834 - 2,834 748 2,086 - 2,086 54 2,140 210 2 19.86 19.73 |
12,079 759 12,838 7,381 449 2,530 109 10,469 2,369 - 2,369 580 1,789 - 1,789 1,179 2,968 210 2 17.11 16.98 |
28,200 746 28,946 15,662 915 6,281 199 23,057 5,889 - 5,889 1,552 4,337 - 4,337 390 4,727 210 2 41.27 41.05 |
23,934 894 24,828 14,882 864 4,963 217 20,926 3,902 - 3,902 975 2,927 - 2,927 1,810 4,737 210 2 28.00 27.79 |
49,640 1,743 51,383 30,012 1,737 10,248 435 42,432 8,951 - 8,951 2,220 6,731 - 6,731 2,540 9,271 210 2 33,191 64.25 63.83 |
Statement of standalone unaudited financial results for the quarter and six months ended September 30, 2021
| 1 2 Sr. No. |
Particulars | Quarter ended | Quarter ended | Quarter ended | Six months ended | Six months ended | Year ended |
|---|---|---|---|---|---|---|---|
| 30-09-2021 (Reviewed) |
30-06-2021 (Reviewed) |
30-09-2020 (Reviewed) |
30-09-2021 (Reviewed) |
30-09-2020 (Reviewed) |
31-03-2021 (Audited) |
||
| Segment revenue Transportation Plant Engineering Industrial Products Medical Devices Telecom & Hitech |
4,355 2,438 3,166 1,915 2,599 |
4,107 2,342 2,919 1,761 2,598 |
3,601 1,867 2,453 1,722 2,436 |
8,462 4,780 6,085 3,676 5,197 |
7,138 3,675 4,835 3,341 4,945 |
14,740 7,930 10,048 6,872 10,050 |
|
| Revenue from operations | 14,473 | 13,727 | 12,079 | 28,200 | 23,934 | 49,640 | |
| Segment results Transportation Plant Engineering Industrial Products Medical Devices Telecom & Hitech |
791 507 1,023 600 474 |
779 556 892 548 351 |
521 362 659 547 238 |
1,570 1,063 1,915 1,148 825 |
868 656 1,265 1,031 589 |
2,081 1,651 2,837 2,124 1,177 |
|
| Total results | 3,395 | 3,126 | 2,327 | 6,521 | 4,409 | 9,870 | |
| Less - Unallocable expenses (net) Add - Other income Less - Finance costs Less - Depreciation and amortisation expenses |
82 297 101 454 |
182 449 98 461 |
159 759 109 449 |
264 746 199 915 |
320 894 217 864 |
490 1,743 435 1,737 |
|
| Profit before tax | 3,055 | 2,834 | 2,369 | 5,889 | 3,902 | 8,951 |
Notes for segment information
a Segments have been identified in accordance with Indian Accounting Standards ("Ind AS") 108 on Operating Segments, considering the risk/return profiles of the business, their organisational structure and internal reporting systems.
b Property, plant and equipment used and liabilities contracted for performing the Company's business have not been identified to any of the above reported segments as the property, plant and equipment and services are used interchangeably among segments.
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L&T Technology Services Limited
Registered Office: L&T House, N.M. Marg, Ballard Estate, Mumbai 400 001
CIN : L72900MH2012PLC232169
Standalone statement of Cash Flow as per regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016.
| ₹ Million | ₹ Million | ₹ Million | ||
|---|---|---|---|---|
| A B C Sr. No. |
Particulars | Six months ended |
Six months ended |
Year ended |
| September 30, | September 30, | March 31, | ||
| 2021 | 2020 | 2021 | ||
| Cash flow from operating activities Profit before tax Adjustments for: Depreciation and amortisation Interest received Interest paid (Profit)/ loss on sale of Property, plant and equipment Employee stock option forming part of staff expenses Bad debts written off, allowances for bad and doubtful debts and ECL Investment income Unrealised foreign exchange loss/(gain) Operating profit before working capital changes Changes in working capital (Increase)/decrease in trade and other receivables Increase/(decrease) in trade and other payables (Increase)/decrease in working capital Cash generated from operations Direct taxes paid Net cash (used in)/from operating activities Cash flow from investing activities Purchase of property, plant and equipment and intangibles Sale of property, plant and equipment and intangibles (Purchase)/ sales of current investments (net) (Purchase)/ sales of non-current investments Deposits placed/loans given (net) - subsidiaries and third parties Capital infusion in subsidiaries Dividends received from current investments Dividend from subsidiary Interest received Net cash (used in)/from investing activities Cash flow from financing activities Equity share capital issued including share premium Proceeds from/(repayment of) borrowings Interest paid Lease liability paid Dividend paid Dividend tax Net cash (used in) / from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the period/ year Cash and cash equivalents at end of theperiod/year |
5,889 915 (178) 199 (9) 32 86 (181) (90) 6,663 (2,447) 1,572 (875) 5,788 (1,388) 4,400 (383) 15 3,308 - (3,879) - 21 - 16 (902) - - (199) (370) (1,523) - (2,092) 1,406 1,452 2,858 |
3,902 864 (92) 217 (13) 90 19 (308) 507 5,186 3,044 (840) 2,204 7,390 (868) 6,522 (449) 7 (4,005) (11) 349 (812) 98 180 49 (4,594) 1 (239) (217) (347) (1,412) - (2,214) (286) 1,965 1,679 |
8,951 1,737 (150) 435 (31) 126 (142) (493) 508 10,941 2,767 1,346 4,113 15,054 (2,383) 12,671 (724) 14 (8,427) - (223) (812) 197 180 149 (9,646) 1 (239) (435) (667) (2,198) - (3,538) (513) 1,965 1,452 |
|
| Notes: 1 2 3 Six months ended 30-09-2021 Six months ended 30-09-2020 Year ended 31-03-2021 a) Cash and cash equivalents disclosed under current assets 2,854 1,677 1,426 b) Other bank balances disclosed under current assets 4,532 2 576 c) Cash and cash equivalents disclosed under non-current assets 277 2 2 Total cash and cash equivalents as per balance sheet 7,663 1,681 2,004 Add: (i) Unrealised exchange (gain)/loss on cash and cash equivalents 4 2 26 Less: (ii) Other bank balances disclosed under current assets 4,532 2 576 Less: (iii) Cash and cash equivalents disclosed under non-current assets 277 2 2 Total cash and cash equivalents as per statement of cash flows 2,858 1,679 1,452 Statement of cash flows has been prepared under the indirect method as set out in the Ind AS 7 "Statement of Cash Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015. Purchase of property, plant and equipment and intangibles represents additions to property, plant and equipment and other intangible assets adjusted for movement of capital work-in-progress of (a) capital work-in-progress for property, plant and equipment and (b) intangible assets. Cash and cash equivalents included in the statement of cash flows comprise the following: |
Notes:
-
1 Statement of cash flows has been prepared under the indirect method as set out in the Ind AS 7 "Statement of Cash Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015.
-
2 Purchase of property, plant and equipment and intangibles represents additions to property, plant and equipment and other intangible assets adjusted for movement of capital work-in-progress of (a) capital work-in-progress for property, plant and equipment and (b) intangible assets.
-
3 Cash and cash equivalents included in the statement of cash flows comprise the following:
| a) Cash and cash equivalents disclosed under current assets b) Other bank balances disclosed under current assets c) Cash and cash equivalents disclosed under non-current assets Total cash and cash equivalents as per balance sheet Add: (i) Unrealised exchange (gain)/loss on cash and cash equivalents Less: (ii) Other bank balances disclosed under current assets Less: (iii) Cash and cash equivalents disclosed under non-current assets Total cash and cash equivalents as per statement of cash flows |
Six months ended 30-09-2021 Six months ended 30-09-2020 Year ended 31-03-2021 2,854 1,677 1,426 4,532 2 576 277 2 2 |
|---|---|
| 7,663 1,681 2,004 4 2 26 4,532 2 576 277 2 2 |
|
| 2,858 1,679 1,452 |
Explanatory notes to the statement of standalone unaudited financial results for the quarter and six months ended September 30, 2021
-
The standalone unaudited financial results for the quarter and six months ended September 30, 2021 have been taken on record by the Board of Directors at its meeting held on October 19, 2021. The statutory auditors have carried out limited review of the above standalone unaudited financial results and have issued an unqualified limited review report. The information for the quarter and six months ended September 30, 2021 presented above is extracted from the unaudited interim standalone financial statements. These standalone financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended.
-
During quarter and six months ended September 30, 2021 the Company has allotted 1,22,000 and 1,32,979 equity shares of Rs. 2 each fully paid-up respectively on exercise of stock options by employees in accordance with the Company's stock option scheme.
-
The Board of Directors at its meeting held on October 19, 2021, has declared an special dividend of Rs.10 per equity share.
-
Estimation uncertainty relating to COVID-19: The Company has considered internal and certain external sources of information including reliable credit reports, economic forecasts and industry reports up to the date of approval of the financial results in determining the impact on various elements of its financial results. The Company has used the principles of prudence in applying judgments, estimates and assumptions including sensitivity analysis and based on current estimates, the Company expects to fully recover the carrying amount of trade receivables including unbilled receivables, intangible assets and investments. Management of the Company has also reviewed goodwill and is of the opinion that no impairment is required at present. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results.
-
Figures for earlier periods have been regrouped, wherever necessary.
For and on behalf of the Board of Directors of L&T Technology Services Limited
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Mumbai October 19, 2021
Amit Chadha Chief Executive Officer and Managing Director
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L&T Technology Services reports strong broad-based growth in Q2FY22
Q2 Revenue of ₹1,608 crore, up 22% YoY Q2 Net profit of ₹230 crore, up 39% YoY
Mumbai, October 19, 2021: L&T Technology Services Limited (BSE: 540115, NSE: LTTS), India’s leading pure-play engineering services company, announced its results for the second quarter ended September 30, 2021.
Highlights for Q2FY22 include:
-
Revenue at ₹ 16,077 million; growth of 22% YoY
-
USD Revenue at $217.4 million; growth of 22% YoY
-
EBIT margin at 18.4%; up 470 bps YoY
-
Net profit at ₹ 2,300 million; growth of 39% YoY
-
Special dividend of ₹10 per share to mark the 5-year anniversary of LTTS' IPO; Record date October 27, 2021
During the quarter, LTTS won 5 deals with TCV of USD10 million plus, which includes 2 USD25 million plus deals.
“We had a strong quarter with 6% sequential growth in constant currency driven by healthy traction in digital engineering across all our five segments. The rising digital adoption across our customer base has led to our revenue from digital & leading-edge technologies increasing to 55% in Q2.
Medical, our youngest segment, crossed $100mn in annualized revenue and is a testament to our differentiated domain expertise and strategic relationships. We are seeing a healthy deal pipeline and good traction in our six big bets - Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability.
Our broad-based growth was accompanied by a rise in Operating margin which at 18.4% is the highest we have reported. We will continue the journey of investing in innovation labs and capability building, that has yielded us gains in market share and operating model efficiency”, said Amit Chadha, CEO & Managing Director, L&T Technology Services Limited.
Industry Recognitions:
-
LTTS has been recognized as a ‘Leader’ in Everest Group’s Autonomous, Connected, Electric & Shared Mobility Automotive Engineering study
-
NelsonHall positioned LTTS in the ‘Leaders’ Category in Digital Manufacturing Services in its NEAT Leader 2021 study
-
ISG Group rated LTTS as ‘Leader’ in IoT Consulting & Services and IT/OT Tech Data Convergence
REGISTERED OFFICE: L&T House, N.M. Marg, Ballard Estate, Mumbai - 400 001 CIN: L72900MH2012PLC232169
www.LTTS.com [email protected] Copyright © L&T Technology Services
-
LTTS’ Finance Team was honored for excellence in Consistent Liquidity Management by BW Businessworld CFO Finance Strategy Awards 2021
-
Stevie’s International Business Award adjudged LTTS’ SafeX DevOps framework as the winner in the Achievement in Product Innovation category
-
LTTS won the prestigious Association for Talent Development (ATD) Best Award 2021 and was ranked No. 1 for Talent Development practices
Patents
At the end of the second quarter, the patents portfolio of L&T Technology Services stood at 769, out of which 556 are co-authored with its customers and the rest are filed by LTTS.
Human Resources
At the end of Q2FY22, LTTS’ employee strength stood at 17,983.
About L&T Technology Services Ltd
L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. We offer consultancy, design, development and testing services across the product and process development life cycle. Our customer base includes 69 Fortune 500 companies and 57 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries. Headquartered in India, we have over 17,900 employees spread across 17 global design centers, 28 global sales offices and 72 innovation labs as of September 30, 2021. For more information please visit https://www.ltts.com/
Media Contact: Aniruddha Basu L&T Technology Services Limited E: [email protected] T: +91-80-67675707
REGISTERED OFFICE: L&T House, N.M. Marg, Ballard Estate, Mumbai - 400 001 CIN: L72900MH2012PLC232169 www.LTTS.com [email protected] Copyright © L&T Technology Services
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SECOND QUARTER - FY 22 RESULTS Investor Release Mumbai, India, October 19, 2021
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FINANCIAL HIGHLIGHTS
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REVENUE IN INR
- [Revenue of ] [₹][16,077 million][ for the quarter; up ] [5.9% QoQ][ and ] [22.4% YoY]
REVENUE IN USD
- [ Revenue of ] [$217.4 million][ for the quarter; up ] [5.7% QoQ][ and ] [22.1% YoY][; in constant currency up ] [6.0% QoQ ] and 22.3% YoY
PROFIT IN INR
-
[EBIT of ] [₹2,964 million][ for the quarter, EBIT margin at ] [18.4%]
-
[ Net Income of ] [₹2,300 million][ for the quarter, up ] [6.4% QoQ][ and ] [39.1% YoY][; Net Income margin at ] [14.3%]
CAPITAL RETURN
- [Special dividend of ] [₹10][ per share to mark the 5-year anniversary of LTTS’ IPO]
SAFE HARBOUR STATEMENT
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve number of risks, and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. L&T Technology Services Limited (LTTS) does not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.
PAGE 2 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
MESSAGE FROM THE CEO & MANAGING DIRECTOR
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We had a strong quarter with 6% sequential growth in constant currency driven by higher spends on digital engineering at all five segments. We are well positioned to capture this opportunity with our six big bets focussed on Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability.
Performance was led by Industrial Products which grew by 8% or more for a second consecutive quarter and is on track to be one of our faster growing segments this fiscal. Medical, our youngest segment, crossed $100mn in annualized revenue and is a testament to our differentiated domain expertise and strategic relationships. Our solutions in Medical such as Chest-rAI and Robotic Endo Trainer are gaining traction in the market as customers look to leverage AI and Robotics in their products.
During the quarter, LTTS won 5 deals with TCV of USD10 million plus, which includes 2 USD25 million plus deals. The rising digital adoption across our customer base has led to our revenue from digital & leading-edge technologies increasing to 55% in Q2.
Our broad-based growth was accompanied by a rise in Operating margin which at 18.4% is the highest we have reported. We will continue the journey of investing in innovation labs and capability building, that has yielded us gains in market share and operating model efficiency. Such investments have helped our offerings being consistently rated highly by the industry – recently we were recognized as a ‘Leader’ in Everest Group’s Autonomous, Connected, Electric & Shared Mobility Automotive Engineering study.
The demand environment is healthy, and we are confident of broad-based growth continuing. We raise our FY22 USD revenue growth guidance to 19-20%. I am very grateful to our employees for their commitment and passion, and to all our stakeholders for the constant encouragement.
Amit Chadha
CEO & Managing Director
L&T Technology Services Limited
PAGE 3 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
PERFORMANCE HIGHLIGHTS
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KEY DEAL WINS
LTTS closed several multi-million dollar projects from global customers across segments. The major wins are listed below:
-
[A Hi-Tech client has selected LTTS as their strategic partner to establish their extended product development center for adoption of new-age technologies ] and accelerate time-to-market
-
[For an American automotive supplier, LTTS will be expanding its dedicated design center in India to strengthen capacity and capabilities which will be ] leveraged by the customer’s global technology teams. This center will act as the customer’s future technology hub.
-
[LTTS has been awarded a multi-year program from an European Oil & Gas Company to create digital twins for all its upstream and downstream ] assets, to reduce operational costs
-
[A leading automotive parts maker has named LTTS as its engineering partner for providing digital cybersecurity, functional safety and software and ] hardware development.
-
[A manufacturer of household cleaning supplies has selected LTTS as its end-end engineering partner to design and implement machine safety for all ] their manufacturing sites in U.S.
-
[An American Industrial technology company has selected LTTS as its engineering services partner for mid of life product support for a suite of product ] lines catering to the agriculture segment.
-
[LTTS has been selected by a North American OEM to develop and enhance industry-unique surround camera Advanced Driver Assistance Systems ] (ADAS)
-
[LTTS is setting up multiple engineering labs-as-a-service for a leading global technology firm to support the customer’s compute, storage, system, ] software and networking platform validation
-
[A European Med-tech company has named LTTS as its engineering provider to offer best in class Hardware and Software Product Engineering Service ] and to help build care as a service business models by smart enabling their products.
PAGE 4 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
FINANCIAL PERFORMANCE
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INCOME STATEMENT (CONSOLIDATED)
Amount in ₹ million
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Q2 FY21 Q1 FY22 Q2 FY22 QoQ YoY
Revenue 13,138 15,184 16,077 5.9% 22.4%
Cost of sales 9,186 10,118 10,726
Gross Profit 3,952 5,066 5,351 5.6% 35.4%
Selling, General & Administration Expenses 1,624 1,889 1,858
EBITDA 2,328 3,177 3,493 9.9% 50.1%
Depreciation & Amortisation 527 554 529
EBIT 1,801 2,623 2,964 13.0% 64.6%
Other Income, net 457 334 180
Income tax expense 595 787 836
Minority Interest 8 8 8
Net Income 1,655 2,162 2,300 6.4% 39.1%
Margins (%)
Gross Margin 30.1% 33.4% 33.3%
EBITDA Margin 17.7% 20.9% 21.7%
EBIT Margin 13.7% 17.3% 18.4%
Net Income Margin 12.6% 14.2% 14.3%
Earnings Per Share (INR)
Basic 15.81 20.57 21.89
Diluted 15.69 20.44 21.77
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PAGE 5 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
Amount in ₹ million
OTHER INCOME
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Q2 FY21 Q1 FY22 Q2 FY22
Income from investments, net 111 164 180
Foreign exchange gains/(loss) 29 245 299
Govt. incentives 400 0 -290
Others (incl. IND AS 116 Finance charge) -83 -75 -9
Total 457 334 180
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PAGE 6 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
Amount in ₹ million
BALANCE SHEET (CONSOLIDATED)
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FY21 Q2 FY22
Assets
Property and equipment 6,379 6,653
Intangible Assets and Goodwill 6,564 6,467
Accounts Receivable 12,346 14,895
Unbilled Revenues 2,415 2,404
Investments 15,149 11,872
Cash and Cash equivalents 2,327 7,711
Other current assets 2,789 2,697
Other non-current assets 2,760 3,447
Total Assets 50,729 56,146
Liabilities and Shareholders' Equity
Shareholders' Funds 34,731 38,128
- -
Short term borrowings
Other current liabilities 10,982 12,705
Other non-current liabilities 4,915 5,195
Minority Interest 101 118
Total Liabilities 50,729 56,146
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CASH FLOW SUMMARY (CONSOLIDATED)
Amount in ₹ million
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FY21 YTD FY22
Net cash provided by operating activities 13,273 4,613
Capex -756 -388
Free Cash Flow 12,517 4,225
Free Cash Flow to Net Income (%) 189% 95%
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PAGE 7 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
OPERATIONAL PERFORMANCE
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QoQ YoY In Constant Currency
Q2 FY21 Q1 FY22 Q2 FY22
Growth Growth
QoQ Growth YoY Growth
Revenue (USD Mn) 178.0 205.7 217.4 5.7% 22.1% 6.0% 22.3%
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REVENUE BY VERTICAL
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Q2 FY21 Q1 FY22 Q2 FY22 QoQ Growth YoY Growth
Transportation 31.5% 31.2% 31.4% 6.2% 21.6%
Industrial Products 19.5% 19.5% 20.0% 8.6% 25.4%
Telecom & Hi-tech 21.4% 22.0% 21.1% 1.4% 20.6%
Plant Engineering 14.4% 15.5% 15.3% 4.1% 30.0%
Medical Devices 13.2% 11.7% 12.2% 9.6% 12.2%
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REVENUE BY GEOGRAPHY
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Q2 FY21 Q1 FY22 Q2 FY22 QoQ Growth YoY Growth
North America 60.0% 62.3% 62.9% 6.8% 28.0%
Europe 16.0% 16.8% 16.7% 5.2% 27.3%
India 13.6% 12.9% 13.0% 6.2% 16.5%
Rest of the World 10.4% 8.0% 7.4% -2.2% -12.8%
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PAGE 8 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
REVENUE MIX
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Q2 FY21 Q1 FY22 Q2 FY22
Onsite 45.1% 41.9% 40.8%
Offshore 54.9% 58.1% 59.2%
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REVENUE BY PROJECT TYPE
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Q2 FY21 Q1 FY22 Q2 FY22
Fixed Price 39.7% 33.8% 30.0%
Time and Material Contract 60.3% 66.2% 70.0%
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CLIENT PROFILE
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Q2 FY21 Q1 FY22 Q2 FY22
Number of Active Clients 283 305 314
30 Million dollar + 1 - 1
20 Million dollar + 5 5 6
10 Million dollar + 20 20 21
5 Million dollar + 44 43 45
1 Million dollar + 116 122 125
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Client profile is based on LTM (Last Twelve Months) revenue
PAGE 9
L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
CLIENT CONTRIBUTION TO REVENUE
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Q2 FY21 Q1 FY22 Q2 FY22
Top 5 Clients 17.0% 16.4% 17.0%
Top 10 Clients 28.3% 27.4% 28.2%
Top 20 Clients 44.9% 43.9% 44.1%
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Client contribution is based on LTM (Last Twelve Months) revenue
UTILISATION
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Q2 FY21 Q1 FY22 Q2 FY22
Including Trainees 75.4% 79.2% 78.1%
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EMPLOYEE STATISTICS
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Q2 FY21 Q1 FY22 Q2 FY22
Total Headcount 15,902 16,972 17,983
Billable 14,778 15,896 16,875
Sales & Support 1,124 1,076 1,108
Voluntary Attrition % (LTM) 10.8% 14.5% 16.5%
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EXCHANGE RATE (USD/INR)
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Q2 FY21 Q1 FY22 Q2 FY22
Period Realised 73.79 73.83 73.96
Period Closing 73.77 74.33 74.23
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PAGE 10 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
INDUSTRY RECOGNITIONS
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[LTTS has been recognized as a ‘Leader’ in Everest Group’s ] [Autonomous, Connected, Electric & Shared Mobility Automotive Engineering ][study]
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[ NelsonHall positioned LTTS in the ‘Leaders’ Category in ] [Digital Manufacturing Services][ in its NEAT Leader 2021 study]
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[ISG Group rated LTTS as ‘Leader’ in ] [IoT Consulting & Services ][and ] [IT/OT Tech Data Convergence]
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[ LTTS’ Finance Team was honoured for excellence in ] [Consistent Liquidity Management][ by BW Businessworld CFO Finance Strategy Awards 2021 ]
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[ Stevie’s International Business Award adjudged LTTS’ SafeX DevOps framework as the winner in the ] [Achievement in Product Innovation][ category]
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[ Association of National Advertisers (ANA), USA honoured LTTS with the B2 Award 2021 in the Podcast Category for ] [#EngineersFromTheHomeDesk ] Series
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[ LTTS won the prestigious Association for Talent Development (ATD) Best Award 2021 and was ranked No. 1 for ] [Talent Development ][practices]
OTHER HIGHLIGHTS
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[LTTS announced its award-winning healthcare solution Chest rAI™ in collaboration with global technology leader Intel Corporation. Chest rAI™ will ] be fuelled by the Intel OpenVINO Toolkit and AI Analytics Toolkit to run optimized AI inferencing models on 3rd Gen Intel Xeon Scalable processors with built in AI accelerators.
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[ L&T Technology Services inaugurated the NeXSens Lab in its Bengaluru Campus. The lab, which will serve LTTS’ global clientele, is equipped with state-] of-the-art high-precision tools and will cater to all sensorization requirements. With this lab, LTTS will enable rapid concept to prototyping needs of sensorization of products across various industry verticals.
PAGE 11 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
PATENTS
At the end of the second quarter, the patents portfolio of L&T Technology Services stood CORPORATE SOCIAL RESPONSIBILITY at 769 , out of which 556 are co-authored with its customers and the remaining 213 are filed by LTTS.
CORPORATE SOCIAL RESPONSIBILITY
During the quarter, LTTS’ CSR efforts were dedicated to address the needs of the community and ensuring the health and well-being of the masses. The key initiatives undertaken in Q2FY22 include:
Short Stay Facility & Sneha-Hastha Project
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To support the children displaced by the pandemic, LTTS partnered with SOS Children’s Villages of India and MILT Charitable Trust for two projects to provide relief and shelter. Both the CSR initiatives was formally inaugurated by Mrs. Meena Subrahmanyan, President of Prayas Trust.
- [Short Stay Facility: LTTS partnered with SOS Children’s Villages of India to create temporary relief shelters for young ] girls without parental care. The shelter homes are in SOS Villages’ Bengaluru campus.
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- [Sneha-Hastha Project: LTTS partnered with MILT Charitable Trust to provide permanent shelter for children orphaned by the pandemic. The initiative ] will also focus on the extra-curricular activities such as exercise and dance for a comprehensive development of the children to enable them to lead a fulfilling life as responsible citizens.
PAGE 12 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT
ABOUT L&T TECHNOLOGY SERVICES
L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. We offer consultancy, design, development and testing services across the product and process development life cycle. Our customer base includes 69 Fortune 500 companies and 57 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries. Headquartered in India, we have over 17,900 employees spread across 17 global design centers, 28 global sales offices and 72 innovation labs as of September 30, 2021.
For more information please contact:
Pinku Pappan
Head, Investor Relations & M&A Email: [email protected]
For additional information about L&T Technology Services log on to www.LTTS.com
Copyright © L&T Technology Services
PAGE 13 L&T TECHNOLOGY SERVICES | Q2 FY 22 - QUARTERLY RESULT