L&T Technology Services (LTTS) reported a sequential increase in its revenue during the quarter ended March, led by growth in its tech and sustainability segments. However, net profit declined due to the impact of the Intelliswift acquisition completed during the quarter
Consolidated revenue increased by 12.4% quarter-on-quarter to Rs 2,982.4 crore in January-March. Meanwhile, the operating margin fell to 13.2% against 15.9% reported in the December quarter, which led to the net profit declining 3.5% to Rs 311.1 crore.
“We continued our industry leading QoQ growth momentum with a third straight quarter of sequential growth of 10.7% and delivered 8.9% revenue growth in cc in FY25 despite a challenging environment. The growth was driven by superior client engagements and new-gen service offerings for our clients in the 3 segments, as well as a record deals momentum that started in H2FY25,” Amit Chadha, CEO and managing director, said.
On the deal front, LTTS said it recorded the highest-ever bookings in the March quarter, which included one $80 million deal, one $50 million deal, along with a $30 million, $20 million, and three $10 million deals.
“The large deal pipeline has been robust on the back of value enhancement across the clients’ product lifecycle and digital transformation journey. Our balanced 3-segment approach is allowing us to grow in a de-risked manner with half of our large deals in this quarter coming in our most profitable segment of sustainability,” Chadha said.
The engineering services company’s revenue contribution from its largest vertical sustainability, rose 28% sequentially to 42.1% in constant currency (CC) during the quarter ended March.
Further, sales contribution from the technology segment rose 1.9% to 28.7%. Meanwhile, revenue from mobility fell 0.2% sequentially to 29.2%.
On the geography front, the company’s revenue contribution from North America rose 11.4% quarter-on-quarter in CC. And, the revenue from Europe rose 0.6%, while that of India and the rest of the world rose 18.8% and 5.5%, respectively.
The company’s total employees count rose 793 quarter-on-quarter to 24,258, and the attrition fell 10 basis points to 14.3%.
Going forward, the company expects FY26 to be a better year than FY25, with a double-digit revenue growth in constant currency. “The global macro-economic situation continues to evolve, indicating a degree of caution in tight market conditions. We are focusing on operating levers to maintain our performance,” Chadha said.