L&T Technology Services (LTTS) on Wednesday reported an 18 per cent growth in its March quarter net profit at Rs 309.6 crore.

The engineering services company’s post tax net profit in FY23 rose 22 per cent to Rs 1,169.8 crore.

For the reporting quarter, the company’s revenues grew 19 per cent to Rs 2,096.2 crore while the operating profit margin was stable at 18.7 per cent.

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The company’s managing director and chief executive Amit Chadha told PTI that it will be targeting a revenue growth of more than 20 per cent in FY24.

The operating profit margin may come down to 17 per cent primarily because of amortisation pressures from acquisitions and low margin intensity of the newly acquired Smart World and Communication business of the parent L&T.

The operating profit margin will go into the 18 per cent range by the first half of FY26, he said, adding that the company has made rapid strides on the profitability front during the Covid period and will get the number up again.

The company added 1,400 people in FY23 to take its overall employee base to 22,233 at the end of the fiscal. It will be adding at least 2,000 people to its rolls in FY24, Chadha said.

He also said the company gave increments to select employees in January, and will be giving usual increments starting with the July salaries to all its staff for their performance.

According to him, LTTS is more sanguine about its growth even amid the impact of the ongoing weak macro environment on the technology sector because it is present in areas where companies continue to spend on.

These include electrification and energy transition, digital which includes artificial intelligence, cyber security and cloud, and business transformation to reduce costs, he said.