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L&T Technology Services Q3FY25 results: Net profit drops 4% to Rs 322.4 cr

Meanwhile, revenue for the third quarter soared 9.5 per cent on year, at Rs 2,653 crore

L&T, LTTS, L&T tech, L&T Technology

(Photo:X@LnTTechservices

BS Reporter Mumbai

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L&T Technology Services (LTTS) announced net profit of Rs 3,22.4 crore for the third quarter of the financial year 2025 (Q3FY25), down by 4.1 per cent year-on-year (Y-o-Y).  Sequentially though, the growth was flat with a mere 0.9 per cent growth.
 
Meanwhile, revenue for the third quarter soared 9.5 per cent on year, at Rs 2,653 crore. On a sequential basis it was up 3 per cent.
 
The company has guided for a near 10 per cent revenue growth in constant currency for FY25.
 
“Our ‘Go Deeper to Scale’ strategy under which we made focussed investments in the first half of the current fiscal has started yielding results. The large deal pipeline has seen robust addition on the back of engagements with customers on both new age product and platform development and business transformation,” said Amit Chadha, CEO and managing director, LTTS.
 
 
The company had the 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.
 
Growth was led by its technology and sustainability segments, for which the company claimed that the demand outlook has been steadily improving. In tech, LTTS grew by 11.1 per cent sequentially driven by ramp ups in MedTech, hyperscalers and communication providers. Sustainability grew by 4 per cent sequentially helped by plant modernisation and automation demand.
 
EBIT margin at 16.2 per cent was up 110 basis points Q-o-Q, this excludes one-time non-operational M&A expense, and after absorbing wage hikes. “We continue to aspire for EBIT margins to be better in H2 compared to H1, on our organic book of business,” said Chadha.
 
In terms of growth from geographies, LTTS too, like its larger peers saw it coming from India (5.6 per cent Q-o-Q) and the rest of the world (6.5 per cent). North America was down 0.2 per cent Q-o-Q, but was up 1.2 per cent Y-o-Y. Europe saw a flat growth sequentially (0.6 per cent) and grew 17.6 per cent Y-o-Y.
 
Despite a strong growth, the firm's headcount declined by 233 employees. The total headcount at the end of the third quarter was 23,465, with attrition at 14.4 per cent. 
 

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First Published: Jan 15 2025 | 5:11 PM IST

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