LTTS reports 13% rise in net profit in Q3; maintains revenue guidance at 17.5-18.5%
The deal bookings of LTTS remained robust in the third quarter. The company signed a total of six $10 mn plus TCV deals across all industry segments that include one $40 mn deal and one $20 mn deal. Among verticals, medical devices grew 2.4% sequentially, while telecom and hi-tech witnessed a growth of 1% during this period
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Bengaluru: Engineering services company L&T Technology Services (LTTS) on Tuesday posted a 13 per cent rise in its net profit at Rs 336 crore for the third quarter ended December, 2023. The company’s revenue increased 12 per cent to Rs 2,422 crore during the same period. In dollar term, revenue was at $290.7 million, which was a rise of 1 per cent sequentially on constant currency basis.
The deal bookings of LTTS remained robust in the third quarter. The company signed a total of six $10 million plus TCV deals across all industry segments that include one $40 million deal and one $20 million deal. Additionally, it signed two significant empanelment agreements. Operating margin improved to 17.2 per cent in Q3 of FY24, a rise of 10 basis points over the previous quarter.
“We have made notable progress in each of our new-technology focus areas – AI, software defined vehicles (SDV) and cybersecurity. In AI, we filed 53 patents across segments like Transportation, Medical and Industrial Products. We had our first major win in SDV with a US OEM to define the architecture of their next generation automobiles. And continuing our SWC leveraged global deal wins, we won a $10M plus deal in cybersecurity. These wins are a testimony to our differentiated offerings that enable us to become strategic partners to our customers,” said Amit Chadha, CEO & Managing Director, L&T Tech.
“The deal pipeline continues to be robust with multiple large deal opportunities as customers seek productivity and efficiency improvement. We reaffirm our USD revenue growth guidance of 17.5 per cent-18.5 per cent in constant currency,” he said in the investor presentation. Among verticals, medical devices grew 2.4 per cent sequentially, while telecom and hi-tech witnessed a growth of 1 per cent during this period. All its five verticals showed positive growth in this period.
Among geographies, while North America witnessed a degrowth of 0.4 per cent, Europe saw a growth of 6.4 per cent over the previous quarter. Despite the good performance, LTTS’ headcount fell by 582 to 23,298 employees by the end of December quarter. Its attrition fell to 15.8 per cent from 16.7 per cent reported in the previous quarter.
