Margin pressure clouds near-term outlook for L&T Technology's stock

Management maintains FY25 guidance of 8-10 per cent revenue growth in CC, which implies a steep growth rate of 4.5-7 per cent growth per quarter in H2FY25

The Street wasn’t upbeat with the second quarter results of L&T Technology Services (LTTS) and its shares dropped 3 per cent on Thursday. It reported an almost flat 3 per cent rise in consolidated net profit year-on-year (Y-o-Y).

Analysts’ opinions are divided.

LTTS reported revenue of $307 million, up 3.4 per cent quarter-on-quarter (Q-o-Q) in constant currency (CC) terms. The Sustainability vertical saw 6.5 per cent Q-o-Q growth, supported by large deals, bagged earlier. The Mobility vertical hit 5 per cent growth.

Management maintains FY25 guidance of 8-10 per cent revenue growth in CC, which