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(16 Oct 2024, 17:25)

LTTS records PAT of Rs 320 cr in Q2; declares dividend of Rs 17/share

L&T Technology Services (LTTS) consolidated net profit grew 1.91% to Rs 319.60 crore in Q2 FY25 as against Rs 313.60 crore in Q1 FY25.


Revenue from operations was at Rs 2,572.9 crore in the September 2024 quarter, up 4.50% as against Rs 2,461.9 crore reported in the preceding quarter same year.

On a year-on-year (YoY) basis, the IT firm reported a net profit growth of 1.33% and revenue jumped by 7.81% in Q2 FY25.

Profit before tax was at Rs 440.80 crore during the quarter, up 1.87% quarter on quarter (QoQ) and 1.07% YoY.

EBITDA stood at Rs 466 crore in second quarter of FY25, up 2.06% QoQ and up 1.07% YoY. EBITDA margin declined to 18.1% in Q2 FY25 from 19.9% in Q2 FY24 and 18.5% in Q2 FY25. EBIT margin was at 15.1% in Q2 FY25 as against 17.1% in Q2 FY24 and 15.6% Q2 FY25.

In dollar terms, the company's revenue stood at $306.7 million in Q2 FY25, registering growth of 3.9% QoQ and growth of 6.5% YoY. In constant currency, the firm reported a rise of 3.4% QoQ and 6.3% increase on YoY basis.

During the quarter, LTTS won two $20 million and four $10 million TCV deals. Additionally, the company won two significant empanelment agreements in sustainability.

At the end of Q2 FY25, the patents portfolio of L&T Technology Services stood at 1,394, out of which 877 are co-authored with its customers and 517 are filed by LTTS and employee strength stood at 23,698.

Meanwhile, the board has declared an interim dividend of Rs 17 per equity share for the financial year 2024-25. The record date for the same is fixed at 25 October 2024.

Amit Chadha, CEO & managing director of LTTS said, “I am happy to launch a new brand positioning purposeful, agile and innovation. The brand refresh will create a platform for the future, helping us to scale in 3 strategic segments – mobility, sustainability and tech, and build each of them into standalone billion-dollar units.

These segments have already started to show results aided by our ‘Go Deeper to Scale’ strategy which we embarked on at the start of the year. We had strong sequential growth of 4% in Q2 led by Sustainability at 6.5% on the back of earlier large deals and empanelment agreements. Mobility also had a strong showing with 5% growth driven by our differentiated story on SDV and hybridization.

We are seeing an uptick in AI-led deal conversations, and our portfolio of AI solutions & accelerators is helping win deals in our focus areas across segments. We have filed a total of 165 patents in AI in till date. With our pipeline comprising larger sized deals involving consolidation as well as advanced technology led transformation, we are confident about the vision we set for ourselves and our medium-term outlook of $2 billion revenue with EBIT margin of 17-18%.”

L&T Technology Services (LTTS) is a global leader in engineering and technology services. A listed subsidiary of Larsen & Toubro (L&T), we offer design, development, testing, and sustenance services across products and processes.

Shares of L&T Technology Services (LTTS) rose 0.61% to end at Rs 5,351 on the BSE.

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