L&T Tech Q2 Results: Net Profit Increases 5%, Firm Slashes FY24 Revenue Guidance

The company logged a net profit of Rs 315.4 crore for the September quarter in the current financial year against a net profit of Rs 299.9 crore in the second quarter of the previous fiscal year.

L&T Tech managing director, Amit Chadha, said that the firm remained optimistic about the near-term future and would rethink the guidance at the end of the next quarter.

Source : L&T Technology Services Website

L&T Technology Services posted a 5 per cent increase in its net profit after tax on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Tuesday. The engineering services company, however, lowered it’s revenue growth guidance for the current fiscal year.

It logged a net profit of Rs 315.4 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 299.9 crore in the second quarter of the previous fiscal year (FY23). The company reported an increase in revenue of 4.6 per cent at Rs 2,386.5 crore for Q2FY24, compared to Rs 2,281.7 crore logged for the corresponding period a year earlier. 

L&T Tech chief executive and managing director, Amit Chadha, commented on the performance and said, “We had a strong quarter with 3.2% sequential growth in constant currency led by broad-based growth across all 5 segments. Large deal wins were again broad based, with 7 deals more than USD 10 million plus TCV out of which 6 were USD 15 million each. Among them, the key highlight is a USD 10 million deal in North America won as result of having a superior end-to-end technology stack for wireless and 5G communications. This is our first large deal leveraging SWC capabilities in the global market and gives us confidence that our Nex-Gen Communications strategy is gaining momentum.”

Chadha revealed that the company is revising down it’s revenue growth guidance to 17.5-18.5 per cent on a constant currency basis due to longer decision cycles and incremental headwinds from the macro-economic stress in various regions in the short term. 

He elaborated on the advancements and said, “We are investing in software defined vehicles, AI & cybersecurity, and will have close to 2,000 employees trained over the next few quarters. Our collaboration with hyperscalers and chip companies is helping us develop AI solutions and services that address needs of industries like Auto, Manufacturing, and Medical. These conversations are helping us to advance the resilience, growth, and transformation agendas of our customers while also adding more large deal engagements to our pipeline.”

Chadha added that the firm remained optimistic about the near-term future and would rethink the guidance at the end of the next quarter, reported PTI. Among other parameters, the firm reported a 17.1 per cent increase in it’s operating profit margin in the second quarter of the current financial year, against 16.6 per cent growth logged in the same period last year.