L&T Tech Services Net Falls 11.5%, Buys US Firm Esencia Tech

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Larsen & Toubro Technology Services reported an 11.54 percent dip in the March quarter net at Rs 96.5 crore and also announced the acquisition of the US-based Esencia Technologies for an undisclosed sum.

For the full year 2016-17, its net profit grew marginally to Rs 425 crore from Rs 418.6 crore. Meanwhile, its board has elevated AM Naik’s successor (SN Subramaniyan) at the EPC major parent as its vice-chairman with immediate effect from that of non-executive director.

Its total income for the reporting quarter grew marginally at Rs 816.4 crore, but expenses grew faster at Rs 693.2 crore. Esencia is into design services from specification to final product, it said in a statement.

“The proposed acquisition of Esencia will enhance our global offerings in the area of perceptual computing, advanced silicon and wireless networking technologies,” managing director and chief executive Keshab Panda said.

Panda also said the company, which was listed last fiscal, has a good deal pipeline in the transportation, telecom and hi-tech and industrial products segments. It depends on North America, where there are growing voices of protectionism, for 62.9 percent of revenue, followed by Europe at 19.1 percent, rest of the world at 10.1 percent and India at 7.9 percent.

From a sectoral perspective, the transportation and industrial products vertical had the most concentration accounting for 60 percent of the revenue. Digital engineering revenues grew 25 percent during the fiscal and now account for 12.5 percent of the overall pie, and were driven primarily by IP and platforms.

It has filed for 254 patents in FY17, which include 197 co-authored with clients and 57 of its own. The company scrip closed 1.66 percent up at Rs 783.70 on the BSE as against a 0.09 percent correction in the benchmark Sensex.