 "L&T Tech PAT grows 5.1%, FY24 revenue guidance slashed to 17.5-18.5%")
Engineering services firm L&T Technology Services (LTTS) on Tuesday reported a net profit of Rs 315.4 crore for the second quarter (Q2) of the financial year ending March 31, 2024 (FY24), up 5.1 per cent year-on-year (Y-o-Y), and 1.21 per cent sequentially.
The company cut its full-year revenue guidance. It now sees 17.5-18.5 per cent Y-o-Y growth in constant currency (CC) terms due to longer decision cycles and macroeconomic headwinds, compared to its earlier estimate of 20 per cent.
Revenue from operations in Q2FY24 stood at Rs 2,386.5 crore, up 4.6 per cent from Rs 2,281.7 crore in the same quarter last year. Its revenue increased 3.7 per cent quarter-on-quarter (Q-o-Q).
Against the trend of headcount reduction by the top three IT companies of the country, LTTS has reported a net addition of 500 people. Its total headcount stands at 23,880.
Voluntary attrition cooled down by 2.2 per cent and stands at 16.7 per cent in the quarter that ended on September 30. The company plans to hire 2,000 freshers in the current year and has already recruited around 1,000.
“We are investing in software-defined vehicles, artificial intelligence (AI) and cybersecurity, and will have close to 2,000 employees trained over the next few quarters,” Chadha said.
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LTTS won seven deals with a total contract value of more than $10 million across all industry segments, including six deals of $15 million each during the quarter. This includes a multi-year deal with a global oilfield services provider to set up a software centre of excellence in India for their digital transformation.
“While longer-term trends for engineering, research & development (ER&D) remain strong, in the short term, we are seeing longer decision cycles and incremental headwinds from the macro-economic stress in various geographies,” said Amit Chadha, chief executive officer and managing director, LTTS.
The company has managed to maintain the earnings before interest and taxes (Ebit) at 17.1 per cent, down 10 basis points from the previous quarter. Chadha highlighted that the margins remained almost unchanged even after normal wage hikes.