L&T Technology Services Ltd on Wednesday announced its fiscal third quarter earnings with profit at Rs 322.40 crore, recording a drop of 4.10 per cent in comparison to Rs 336.20 crore posted during the third quarter of FY24, missing estimates. It posted revenue from operations at Rs 2653.00 crore, up 9.55 per cent as against Rs 2421.80 crore during the same period of previous financial year. The company EBITDA stood at Rs 422 crore. According to a CNBC TV18 poll, L&T Technology Services was expected to post Q3 profit at Rs 330 crore and revenue was estimated at Rs 2655 crore.
The USD revenue during the quarter in review came in at $312 million, reporting a growth of 8.7 per cent YoY in constant currency.
“We had a strong quarter with 3.1 per cent growth in constant currency led by our Tech and Sustainability segments where the demand outlook has been steadily improving. In Tech, we grew by 11 per cent sequentially driven by ramp ups in Medtech, Hyperscalers and Communication providers where we leveraged our SWC capabilities. Sustainability grew by 4 per cent sequentially helped by plant modernization and automation demand,” said Amit Chadha, CEO & Managing Director, L&T Technology Services Limited.
The company’s large deal TCV saw a healthy increase with eight wins across segments – one $50 million, two $35 million, two $25 million, and three $10 million deals. The large deal pipeline continues to be robust aided by ongoing engagements with customers on both new age product and platform development and business transformation. Our strategy of investing upfront in the first half of the current fiscal has started yielding results with growth and margin improvement,” said Amit Chadha.
During the quarter, the company inaugurated the NVIDIA AI Experience Zone at its Bengaluru design hub, enhancing AI capabilities for clients in Mobility and Tech.
At the end of Q3FY25, the patents portfolio of L&T Technology Services stood at 1,448, out of which 903 are co-authored with its customers and 545 are filed by LTTS.
Further, in terms of human resources, L&T Tech said that at the end of Q3FY25, LTTS’ employee strength stood at 23,465.
Centrum Broking said, “Q3 is a seasonally weak quarter due to furloughs. There are some initial signs of improvement in the business environment as seen in deal bookings. The demand environment in the Mobility/Auto segment remains muted as discretionary tech spending remains weak. It has guided for ~10 per cent cc revenue growth for FY25, aided by contribution from Intelliswift’s acquisition. We expect Revenue/EBITDA/PAT to grow at 13.6%/13.3%/14.7% over FY24-FY27E. We have revised our FY25E/FY26E/FY27E EPS by (6.4%)/0.2%/(3.6%).”