L&T Technology Services Q2 Results: Profit Up 2%, Meets Estimates
The Ebitda margin of LTTS contracted to 15.1% in the quarter ended September from 15.6% in the previous quarter.
(Source: LTTS Website)
L&T Technology Services Ltd.'s consolidated net profit rose 2% quarter-on-quarter in the July–September quarter of the current financial year, meeting the Street's expectations.
The engineering research and development services posted a profit of Rs 320 crore in the quarter ended Sept. 30, as compared to a Rs 333 crore estimate by Bloomberg analysts. In the previous quarter, the company posted a profit of Rs 314 crore.
LTTS revenue during the quarter under review rose 4.5% to Rs 2,573 crore from Rs 2,462 crore in the first quarter of this fiscal, according to an exchange filing on Wednesday. The Bloomberg estimate for the company's revenue was Rs 2,570 crore.
The earnings before interest and taxes rose 1% to Rs 388 crore against Bloomberg's estimate of Rs 413, whereas the Ebitda margin contracted to 15.1% from 15.6% against the Bloomberg estimate of 16.1%.
LTTS Q2 FY25 Earnings Highlights (Consolidated, QoQ)
Revenue from operations rose 4.5% to Rs 2,573 crore versus Rs 2,462 crore.
Net profit increased 2% to Rs 320 crore versus Rs 314 crore.
Ebit rose 1% to Rs 388 crore versus Rs 384 crore.
Margin narrowed to 15.1% versus 15.6%.
"With our pipeline comprising larger-sized deals involving consolidation as well as advanced technology-led transformation, we are confident about the vision we set for ourselves and our medium-term outlook of $2 billion revenue with an EBIT margin of 17–18%," Chief Executive Officer Amit Chadha said.
"We are seeing an uptick in AI-led deal conversations, and our portfolio of AI solutions and accelerators is helping win deals in our focus areas across segments. We have filed a total of 165 patents in AI till date," the managing director added.
LTTS Announces Dividend
LTTS has announced an interim dividend of Rs 17 per equity share on Wednesday. The company announced distribution of Rs 179.9 crore to shareholders in the second quarter of this fiscal.
The board has fixed Oct. 25 as the record date for the purpose of dividend payment.
Shares of LTTS closed 0.72% higher at Rs 5,356.9 apiece on the NSE, compared to a 0.34% decline in the benchmark Nifty 50.
