17-Oct-2024, 02:48 PM
L&T Technology Services (LTTS) has reported an impressive 8% year-on-year growth for the second quarter of fiscal year 2025 (Q2FY25), reflecting the company’s resilience and strategic focus in a competitive market. The results, announced on October 16, 2024, highlighted a revenue of ₹25,729 million, which also represents a 4.5% increase compared to the previous quarter.
The company’s USD revenue amounted to $307 million, marking a growth of 3.9% quarter-on-quarter and 6.5% year-on-year. This performance underscores LTTS’s ability to navigate global economic challenges while capitalizing on emerging opportunities in engineering and technology services. The earnings before interest and taxes (EBIT) margin stood at 15.1%, indicating robust operational efficiency.
Net profit for the quarter reached ₹3,196 million, reflecting a modest growth of 1.3% compared to the same period last year. Despite slightly missing market expectations, the company’s overall performance aligns with its strategic objectives. In line with this positive trajectory, LTTS announced an interim dividend of ₹17 per share, with a record date set for October 25, 2024.
During Q2FY25, LTTS secured significant contracts, winning two deals worth $20 million each and four deals valued at $10 million each in total contract value (TCV). Additionally, the company entered into two notable empanelment agreements focused on sustainability initiatives. These achievements are part of LTTS’s broader strategy to enhance its footprint in key sectors such as Mobility, Sustainability, and Technology.
Amit Chadha, CEO and Managing Director of LTTS, emphasized the company’s commitment to innovation and growth through a refreshed brand positioning encapsulated by the tagline “Purposeful. Innovative and nimble.” He pointed out that this quarter’s particularly robust growth in the Mobility and Sustainability categories has been fueled by earlier big deals and calculated investments.
The company is also witnessing an uptick in artificial intelligence (AI)-led deal conversations, with a total of 165 patents filed in AI to date. This reflects LTTS’s proactive approach to integrating advanced technologies into its service offerings.
Looking ahead, LTTS maintains its guidance for FY25, projecting revenue growth in constant currency between 8-10%. The company aims for a medium-term revenue target of $2 billion with an EBIT margin of 17-18%, demonstrating confidence in its strategic direction and market positioning as it continues to expand its capabilities and client base across various sectors.
Source: ANI
