Growth driven by Medtech, Hyperscalers and Communication
Strategy of investing upfront in the first half of the current fiscal has started yielding results with growth and margin improvement for L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a global leader in engineering and technology services.
The strategic investment benefits were shared by Amit Chadha, CEO & Managing Director, L&T Technology Services as he reported Q3 revenue of Rs.2,653 crore, up 3.1% QoQ, and net profit of Rs.322 crore, up 0.9% QoQ.
“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,” Chandha said in a report released on 15 Jan 2025 https://www.investindia.gov.in/.
“This strategic move enhances our AI, digital and software product engineering capabilities, increasing our ability to deliver greater value to clients through a unified offering.
“During the quarter, we inaugurated the NVIDIA AI Experience Zone at our Bengaluru design hub, enhancing AI capabilities for clients in Mobility and Tech. With 174 patents filed in AI/Gen AI applications, we reaffirm our commitment to AI led innovation,” he said http://nvidia.com.
The listed-group had a strong quarter with 3.1% 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% sequentially driven by ramp ups in Medtech, Hyperscalers and Communication providers where we leveraged our SWC capabilities. Sustainability grew by 4% sequentially helped by plant modernization and automation demand,” said Chadha https://digitalinasia.com/.
LTTS secured eight large deals — one US$50 million, two US$35 million, two US$25 million, and three US$10 million deals.
The large deal pipeline continues to be robust aided by ongoing engagements with customers on both new age product and platform development and business transformation, it said.
The company’s highlights for Q3FY25 included:
• Revenue at Rs.26,530 million; growth of 3.1% QoQ and 9.5% YoY;
• USD Revenue at $312 million; growth of 3.1% QoQ and 8.7% YoY in constant currency;
• EBIT margin at 16.2% excluding one-time non-operational M&A expense; up 110 bps QoQ;
• Net profit at Rs. 3,224 million; growth of 0.9% QoQ. Fiinews.com
