DBT Bureau
Bengaluru, 18 July 2024
Engineering services firm, L&T Technology Services witnessed some softness in its first quarter results owing to revenue seasonality but retained its full-year guidance on the back of a likely uptick in the coming quarters.
For the first quarter ended June, the LTTS posted a net profit of Rs 313.6 crore, almost flat as compared to same period of last year. Its revenue grew 7% year-on-year to Rs 2,462 crore during this period. Revenue in dollar term stood at $295.2 million, a fall of 3.1% over the previous quarter on a constant currency basis.
However, its deal pipeline remained robust with several large deal wins with good growth posted in the mobility vertical.
“Mobility grew by 6% sequentially and is now a $400 million plus annual business on a run rate basis. The strong growth was driven by our differentiated presence across EV, SDV and connected car technology. 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 from here on,” CEO of LTTS, Amit Chadha said.
The company won two $30 million deals, two $15 million deals, and three deals of $10 million each.
On the back of the deal pipeline and likely growth revival in key verticals, LTTS retained its FY25 revenue guidance of 8-10%. It also expects its operating margin to improve in the coming quarters.
In the April-June quarter, the operating margin fell 130 basis points to 15.6%. “We expect EBIT margins to see an improvement in the coming quarters as growth gets broad-based across segments,” Chadha said.
The company also remained optimistic about achieving the $1.5 billion revenue run rate in the current fiscal year.
Among geographies, revenue from North America fell 4.6% sequentially, while the company saw more than 10% growth in its European revenue.
