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L&T Technology Services Ltd (LTTS) posted a net profit of ₹320 crore for the second quarter of FY 2024-25, marking a 2% increase from ₹314 crore in the previous quarter. The IT services company’s performance was bolstered by steady growth in revenue and continued expansion in its core technology sectors.
According to the company’s exchange filing, LTTS recorded revenues of ₹2,573 crore for the July-September quarter, representing a 4.5% increase from ₹2,462 crore in the April-June quarter of the same fiscal year. In terms of dollar revenue, the company reported $307 million, up 6.5% year-on-year (YoY), demonstrating strong growth on the global front.
The company’s earnings before interest and taxes (EBIT) for the quarter rose by 1% to ₹388 crore. However, its EBITDA margin contracted slightly to 15.1%, reflecting some cost pressures despite the increase in revenue.
AI-Led Transformation
Amit Chadha, CEO and Managing Director of LTTS, expressed confidence in the company’s trajectory, driven by its strategic focus on larger deals and advanced technology transformations. “With our pipeline featuring large-sized deals focused on consolidation and technology-led transformations, we are optimistic about achieving our medium-term goal of reaching $2 billion in revenue with an EBIT margin of 17-18%,” Chadha said in a statement.
Chadha also highlighted the growing demand for artificial intelligence (AI) solutions, which is playing a pivotal role in winning contracts across various industry segments. “We are seeing increased momentum in AI-led deal discussions, and our portfolio of AI solutions and accelerators is enabling us to secure deals in our focus areas,” he added.
The company has filed a total of 165 patents in AI, underscoring its commitment to innovation. As of the end of Q2FY25, LTTS had a patent portfolio of 1,394, of which 877 were co-authored with customers, and 517 were filed independently by the company. This focus on AI and intellectual property is key to its competitive edge in the market.
Employee Strength and Dividend Announcement
LTTS reported a workforce of 23,698 employees as of September 30, reflecting its ongoing investment in talent to support its growth and expansion in advanced technologies.
In addition to its financial performance, LTTS also announced an interim dividend of ₹17 per equity share for its shareholders, amounting to a distribution of ₹179.9 crore. The record date for the dividend payment has been set for October 25, 2024.
Stock Performance
Shares of LTTS closed 0.72% higher at ₹5,356.9 apiece on the NSE, outperforming the broader market, where the Nifty 50 declined by 0.34%. The positive stock movement reflects investor confidence in the company’s strong quarterly results and its forward-looking growth strategy.
With its solid performance in Q2FY25, L&T Technology Services is well-positioned to capitalize on emerging technology trends such as AI and digital transformation. The company’s focus on innovation, robust deal pipeline, and commitment to delivering shareholder value are expected to sustain its growth momentum in the upcoming quarters.
