L&T Technology Q1FY25 results: Net profit up marginally at Rs 313.6 crore

Engineering services company L&T Technology Services (LTTS) reported a net profit of Rs 313.6 crore in Q1 FY25, marginally up by 0.8 per cent year-on-year (YoY), but down 8 per cent compared to the previous quarter.

Revenue from operations in the first three months of FY25 stood at Rs 2,461 crore, an increase of 7 per cent compared to the same quarter last year, but down 3 per cent on a sequential basis.

The management reaffirmed the FY25 guidance of 8-10 per cent revenue growth in constant currency and a target of achieving the $1.5 billion revenue run rate.

The EBIT margin of the company stood at 15.6 per cent, falling 130 basis points (bps) sequentially and 1.6 per cent YoY.

Geographically, Europe registered strong growth both on a yearly and a sequential basis. Revenues from Europe grew at a rate of 23.7 per cent YoY and 10.6 per cent QoQ, while India grew 12.2 per cent YoY and declined 10.2 per cent on a quarterly basis.

North America also declined 1.4 per cent on a yearly basis.

During the quarter, the company won two $30 million deals, two $15 million deals, and three deals with a TCV of $10 million.

Sector-wise, the Mobility segment performed the best for the firm, registering a growth of 13.4 per cent on a yearly basis.

Amit Chadha, CEO and managing director, L&T Technology Services, said, “We are making good progress with our ‘Go Deeper to Scale’ strategy and the simplification of our organisation structure into three main segments. Mobility grew by 6 per cent sequentially driven by our differentiated presence across EV, SDV and connected car technology that helped us win one $30 million deal and two $15 million deals during the quarter. In Hi-Tech and Sustainability, our new strategy is driving a significant increase in the pipeline and large deal discussions that make us confident of a pickup in growth momentum.”

The firm had a headcount strength of 23,577 at the end of Q1 ending June 2024. This was a decline of 235 employees compared to the same period last year when the total employee count was 23,812.

Further, the attrition rate stood the same as the previous quarter at 14.8 per cent.

On Artificial Intelligence, he said, “In AI, we are accelerating our investments and innovation focus leading to a total of 61 patents being filed so far. We are starting to win AI-led deals on the back of our solutions in Gen AI across Asset Health, software development and digital assistants.”