L&T Tech Q3 results: Profit rises 13% to ₹336 cr; revenue zooms 12%
IT services company L&T Technology Services announced the financial results for the October to December quarter on January 16. During the quarter under review, the company’s net profit stood at ₹336.8 crore, up 13% year-on-year, as against ₹298.2 crore in the corresponding period of the previous year, owing to an improvement in its EBIT margin.
In the December quarter, the company’s revenue from operations surged 12.3% YoY to ₹2,421.8 crore, as against ₹2,157 crore in the same period last year. Of this, the company’s India business contributed 21.5% to its overall revenue. The company’s North American business and European business contributed 54.6% and 16.6%, respectively, to the company’s overall revenue.
Segment-wise, the revenue growth across transportation, industrial products, telecom and hi-tech, plant engineering and medical devices stood at 33.2%, 17.2%, 25.4%, 14% and 10.2%, respectively.
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"All 5 segments grew positively for the second quarter in a row giving us 1% sequential growth despite the seasonal softness. 2 of our units - Industrial Products segment and Europe region have scaled the $200 million run-rate on an annualised basis," says Amit Chadha, CEO & MD, L&T Technology Services.
During the quarter-under-review, the company’s EBIT (earnings before interest and tax) grew by 17.2% to ₹487.7 crore, as against ₹435.6 crore in the same period last year. The company’s EBIT margin stood at 17.2%.
Sequentially, the company’s consolidated profit grew by 6.6% as against ₹315.9 crore in the previous quarter. The company’s revenue grew 1.5% sequentially as against ₹2,386.5 crore.
Meanwhile, Chadha has been re-appointed as the CEO and MD of the company for three years until March 31, 2027.
"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 $10 million plus deal in cybersecurity," says Chadha.
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According to Chadha, large deal wins were broad-based, with 6 deals of $10 million plus TCV which includes one $40 million and one $20 million deal.
"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%-18.5% in constant currency," he adds.
Ahead of the company’s Q3 results, the stock closed 1.73% lower at ₹5,349.70. This was in line with the broader BSE Sensex which closed 199.17 points, or 0.27%, lower at 73,128.77.