LTTS slips after muted Q2 performance; bags deals worth over $60 million

L&T Technology Services (LTTS) fell 2.48% to Rs 3581.45 after the company reported 3% rise in consolidated net profit to Rs 282.4 crore on a 6.5% rise in revenue to Rs 1,995.1 crore in Q2 FY23 over Q1 FY23.

As compared with Q2 FY22, the company's net profit and revenue are higher by 22.8% and 24.1%, respectively.

EBITDA improved by 5.2% to Rs 421.8 crore in Q2 FY23 from Rs 349.3 crore in Q2 FY22. EBITDA margin was 21.1% in Q2 FY23 as against 21.7% in Q2 FY22.

In dollar terms, the company's revenue stood at $247.1 million for the quarter, registering a growth of 3.1% QoQ and 13.6% YoY. In constant currency, the firm reported a growth of 4.5% QoQ and 18.1% YoY.

During the quarter, LTTS won $60 million plus deal and a deal with total contract value (TCV) of $10 million.

At the end of Q2FY23, the patents portfolio of L&T Technology Services stood at 976, out of which 663 are co-authored with its customers and the rest are filed by LTTS.

LTTS' employee strength stood at 21,474 at the end of Q2 FY23. Voluntary Attrition (LTM) was 24.1% in Q2 FY23 as against 23.2% in Q1 FY23 and 16.5% in Q2 FY22.

Amit Chadha, CEO & managing director, L&T Technology Services, said: We are proud to have achieved a $1 billion annualized revenue run-rate in Q2 on constant currency basis. Our momentum stayed strong in the second quarter with revenue growing sequentially by 4.5% in constant currency.

Investments into our EACV big bet has helped us win large deals consistently. In Q2, we won a $60 million plus deal - the third consecutive quarter of wins in the $50 million to $100 million TCV range for the Transportation segment.

We had a good quarter in deals wins, especially in Europe where we closed a record high booking. There is strong demand for Digital Manufacturing Services with programs being initiated around factory automation and digital twin that are enabling us to deliver quick ROI to our Industrial Products and Plant Engineering customers.

Even as macro-economic uncertainties prevail, we do see customer investments continuing unabated in the six big bets.

LTTS is a listed subsidiary of Larsen & Toubro focused on Engineering and R&D (ER&D) services. It offers consultancy, design, development and testing services across the product and process development life cycle.

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