Engineering services company L&T Technology Services Limited (LTTS) on Tuesday announced its second quarter earnings for the financial year 2023-24. It posted Q2 profit at Rs 315.40 crore, up 5.2 per cent in comparison to Rs 299.90 crore during the second quarter of FY23. The company posted revenue from operations at Rs 2386.50 crore, up 4.6 per cent as against Rs 2281.70 crore during the same period last year. L&T Technology Services recorded USD revenue at $288.1 million, up 2 per cent on-year. The EBIT margin stood at 17.1 per cent.
The Board of Directors also declared an interim dividend of Rs 17 per equity share. “The interim dividend shall be paid to equity shareholders of the Company whose names will appear in the register of members or in the records of the depositories as beneficial owners of equity shares as on Friday, October 27, 2023, which is the record date fixed for the aforesaid purpose,” the company said in a regulatory filing.
During the quarter in review, LTTS won a total of seven $10 million plus TCV deals across all industry segments including six deals of $15 million each.
“We had a strong performance with revenue growing by 3.2 per cent sequentially in constant currency and operating margin sustaining at 17 per cent plus levels even as we absorbed wage hikes for our employees. Deal momentum was strong with the highlight being a USD 10 million plus deal win leveraging SWC capabilities in North America. This win has been the result of having a superior end-to-end technology stack for wireless and 5G communications which is becoming a key differentiator for us,” said Amit Chadha, CEO & Managing Director, L&T Technology Services Limited.
“We are investing in software defined vehicles, AI and cybersecurity and will have close to 2,000 employees trained over the next few quarters. Our collaboration with hyperscalers and chip companies is helping us develop AI solutions and services that address needs of industries like auto, manufacturing and medical. We are optimistic that such investments will strengthen our position as the engineering partner of choice for global ER&D companies,” he added.
At the end of Q2FY24, LTTS said, the patents portfolio of the company stood at 1198, out of which 785 are co-authored with its customers and the rest are filed by LTTS. The company’s employee strength stood at 23,880 at the end of Q2FY24.
LTTS also revised its USD revenue growth guidance for FY24 to 17.5-18.5 per cent in constant currency. “While longer term trends for ER&D remain strong, in the short term we are seeing longer decision cycles and incremental headwinds from the macro-economic stress in various geographies. We revise our USD revenue growth guidance for FY24 to 17.5-18.5 per cent in constant currency,” said Amit Chadha.
LTTS is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services.