Following the release of Q3 earnings, L&T Technology Services’ stock increased 9%, with a YoY decline in net profit at ₹322.4 crore. Due to robust contract bookings and expansion in key areas, revenue climbed 9.5% yearly to ₹2,653 crore. For FY25, the firm wants to increase sales by 10%.
L&T Technology Services Shares Rise 9% After Reporting Q3 Results:
On Thursday, January 16, L&T Technology Services (LTTS) shares jumped more than 9% after the business revealed its third-quarter financial results. Although currency headwinds caused LTTS to post a 4.1 percent year-over-year (YoY) decline in net profit to ₹322.4 crore, the market responded favorably to its record-breaking large deal bookings and strong revenue growth.
With a sequential gain of 0.9 percent, the net profit for the quarter was ₹322.4 crore, up from ₹336.2 crore in the previous quarter and ₹319.6 crore a year earlier. With sequential growth of 3.1 percent, revenue for the quarter climbed 9.5 percent year over year to ₹2,653 crore from ₹2,421 crore during the same period the previous year. Dollar sales increased to $312 million, representing an 8.7 percent YoY gain in constant currency terms and a 3.1 percent sequential rise.
Amit Chadha, the CEO and Managing Director, credited the quarter’s success to robust momentum in essential sectors such as media, communications, hi-tech, and medical technology. “With a 3.1 percent increase in constant currency, we had a great quarter, with our Tech section leading the way at 11%. According to Chadha, transaction activity in essential verticals further strengthened the margin trajectory.
With the help of its recent acquisition of Intelliswift, LTTS has set a goal of growing its sales by about 10% in constant currency for FY25. “We reaffirm our medium-term outlook of achieving $2 billion in revenue with EBIT margins of 17–18 percent,” Chadha stated.
The quarter’s EBITDA margin, excluding one-time non-operational M&A expenses, climbed by 110 basis points sequentially to 16.2 percent. Additionally, according to the business, EBIT margins are anticipated to surpass those of the first half of FY25 in the second half.
Eight significant agreements, including one for $50 million, two worth $35 million, and two worth $25 million, were closed by LTTS during the quarter. “With eight victories across all categories, our big deal TCV has increased steadily. According to Chadha, the pipeline of big deals is still strong because of continuous client participation in creating cutting-edge products and platforms and business transformation.
“CY25 will be better than CY24,” Chadha said, expressing hope for the future. Our pipeline is now more extensive than a quarter and a year ago. We are regulating several transactions worth $50 million and $100 million.
LTTS is well-positioned for continued growth in the upcoming quarters thanks to its impressive deal wins and upbeat forecast. The IT stock reached a high of ₹5336.45 during the day, up 9.2 percent. The stock is currently only 11% off its August 2024 top of ₹5,990. In the meantime, it has increased by 26% since June 2024, when it hit a 52-week bottom of ₹4,228.00.
The stock has lost more than 9% in the past year but has gained more than 11% since January 2025. This follows a December decline of more than 10 percent.
