The engineering services arm of Larsen and Toubro Group reported a net profit of Rs 208.60 crore, a rise of 83.30 per cent against the profit of Rs 113.80 crore during the previous quarter ended June 2020.
Shares of the IT firm surged 15 per cent to Rs 3,345 on Thursday, just shy of the 15 per cent circuit limit. BSE Sensex was trading at 53,039.94, 136 points or 0.26 per cent higher, at the time of writing this report. The scrip settled at Rs 2,910.25 on Monday.
Its overall revenue increased by 19.42 per cent to Rs 1,562.6 crore for the reporting quarter while the operating profit widened 5.20 per cent to 17.3 per cent, its highest ever.
The company said that it could expand the margins because of levers like higher digitalization, he said adding that the quantum of work done offshore has also increased to 58 per cent of the billing as against 50 per cent before the pandemic.
The company sees a headroom for increasing the offshore mix in billing to go up by another 1-2 percentage points, he added.
It hired 300 freshers during the quarter, and is targeting to do a total of up to 1,500 freshers during the fiscal year ending March 2022, he said. The overall headcount at the end of June stood at 16,972 people.
The company has identified six focus areas from a future growth perspective in which it will be investing. The list includes automated electric vehicles, 5G telecom, medical technologies, digital manufacturing, AI/ML and sustainability, the company said.
