LTTS’ net profit down 8% QoQ at Rs 313.6 crore

Facing muted growth and a fall in operating margins, L&T Technology Services said its net profit declined 8% sequentially to Rs 313.6 crore for the first quarter of this fiscal. On a year-on-year basis, the net profit was up 0.8%.

The IT engineering firm’s revenue declined 3% sequentially to Rs 2,461.9 crore in the Q1. On a year-on-year basis, the revenue was up 7%. Operating margins fell to 15.6% in the just concluded quarter from 16.9% in Q4 of FY24. On a year-on-year basis, margins fell by 160 bps (100 bps is 1%).

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Amit Chadha, chief executive officer and managing director, said, “We had healthy large deal wins in the quarter, with two $30 million deals, two $15 million deals and three deals of $10 million each.” He added, “We are starting to win AI led deals on the back of our Gen AI solutions across Asset Health, software development and digital assistants.”

Despite muted performance, the company is sticking to its FY25 guidance of 8-10% revenue growth in constant currency, and is committed towards achieving the $1.5 billion revenue run rate.

While Europe, India, and Rest of the World saw year-on-year growth, North America declined 1.4%. Headcount fell marginally by 235 in Q1 to reach at 23,577 employees at the end of the quarter.

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