Tag Archives: AI solutions

L&T Technology Services Reports 2% Rise in Q2 Net Profit to ₹320 Crore

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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.

TCS Q2 Results: Profits Rise 5%, Revenue Up 7.6%, Adds 5,726 Employees

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Tata Consultancy Services (TCS), a global leader in IT services and consulting, posted a net profit of ₹11,909 crore for the second quarter of the fiscal year, reflecting a 5% year-on-year increase. Despite a modest quarter-on-quarter decline of 1.1%, TCS’s results demonstrate the company’s resilience in navigating ongoing market challenges, particularly in the face of global economic uncertainty.

Revenue for the quarter climbed to ₹64,259 crore, a 7.6% year-on-year rise. Key sectors such as energy, resources, utilities, and manufacturing were the primary drivers behind this growth, underscoring the strength of TCS’s diversified business model and its capacity to adapt to fluctuating market conditions. The company also declared a second interim dividend of ₹10 per share, reinforcing its commitment to delivering value to shareholders and maintaining a strong financial position.

TCS continues to expand its workforce, adding 5,726 employees in the July-September quarter, bringing its total headcount to 612,724. Women now make up 35.5% of the company’s workforce, highlighting TCS’s emphasis on fostering a diverse and inclusive work environment. This focus on talent acquisition and diversity is central to the company’s long-term strategy of driving innovation and maintaining its competitive edge in the global IT services sector.

Navigating Geopolitical Uncertainty 

CEO and Managing Director K Krithivasan addressed the cautious trends that have shaped the last few quarters, attributing them to ongoing geopolitical uncertainty. Despite these challenges, the company’s Banking, Financial Services, and Insurance (BFSI) vertical—the largest in its portfolio—showed early signs of recovery. Additionally, TCS reported strong performance in its Growth Markets, further demonstrating its ability to adapt to complex conditions and sustain stable results.

Chief Financial Officer Samir Seksaria emphasized the strategic investments made in talent and infrastructure during the quarter. These investments, combined with disciplined financial management, led to strong cash conversion and positioned the company for future growth. TCS remains confident in its ability to maintain profitable growth, with its long-term cost structures remaining stable despite short-term headwinds.

AI and Innovation Driving Future Growth

TCS is experiencing ongoing momentum in the deployment of Artificial Intelligence (AI) and Generative AI (GenAI) solutions. With over 600 AI/GenAI engagements either fully deployed or in various stages of development, the company is committed to leveraging these advanced technologies to enhance client offerings and drive business growth. The rapid maturation of AI technologies is positioning TCS to further strengthen its leadership in digital transformation and innovation across industries.

The company’s focus on innovation is further evidenced by its patent portfolio. As of September 30, TCS had applied for 8,354 patents, including 160 applied during the quarter, and had been granted 4,369 patents, including 223 granted during the quarter. This robust intellectual property portfolio underscores TCS’s commitment to research and development and its ability to deliver innovative solutions to its clients.

In addition to its financial performance, TCS has also been making strategic moves to strengthen its market position. The company recently secured a Rs 15,000 crore deal with BSNL to set up data centers and 4G sites across India, laying the foundation for future 5G infrastructure. This deal is expected to provide a significant boost to the company’s revenues in the coming quarters.