LTTS Posts Profit Of Rs 322 Cr In Q3; Expects Revenue To Grow 10% In FY25

Bengaluru: Engineering services company, L&T Technology Services (LTTS) posted a net profit of Rs322 crore in third quarter of FY25, a fall of 4.1 per cent as compared to the same period last year.

Its revenue stood at Rs2,653 crore, a growth of 9.5 per cent on year-on-year basis. In dollar term, revenue stood at $311.9 million, which was a rise of 3.1 per cent sequential basis on constant currency term.

Operating margin for the third quarter rose 110 basis points sequentially, at 16.2%, excluding one-time non-operational M&A expense. The company said EBIT margins would be better in the second half compared to first half, on its organic book of business.

“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,” Amit Chadha, CEO of L&T Technology Services said. “With the Intelliswift acquisition now complete, we have formed a new sub-segment called Software & Platforms through which we will strengthen our foothold in Hyperscalers and enter the service-led sectors namely retail, fintech and healthcare which are new and promising markets for us,” he added.

The company said it expects to clock a revenue growth of 10 per cent in the ongoing financial year.

“For FY25, our guidance is for near 10% revenue growth in constant currency, including the contribution from Intelliswift. We reaffirm our medium-term outlook of $2 billion revenue with EBIT margin of 17-18 per cent,” Chadha said in the investor presentation.

The Engineering Research and Development (ER&D) firm said it witnessed its highest ever deal booking TCV aided by eight large deals across segments - one $50 million, two $35 million, two $25 million, and three $10 million deals. During the third quarter ended December, the company’s headcount stood at 23,465, which was fall from 23,698 employees in the previous quarter. The company said it would hire around 2,000 freshers in the next financial year with expectations of better growth.