L&T Technology Services Q3 Results: Net Profit Falls 4% In FY25

Revenue for the quarter rose 9.5 per cent compared to the previous year, reaching Rs 2,653 crore. On a quarter-on-quarter basis, revenue grew by 3 per cent

Growth was primarily driven by the company’s technology and sustainability segments

Source : L&T Technology Services

L&T Technology Services reported a net profit of Rs 322.4 crore for the third quarter of the financial year 2024-25, marking a 4.1 per cent decline year-on-year (YoY). Sequentially, the profit showed a marginal growth of 0.9 per cent.

Revenue for the quarter rose 9.5 per cent compared to the previous year, reaching Rs 2,653 crore. On a quarter-on-quarter basis, revenue grew by 3 per cent. The company has projected nearly 10 per cent revenue growth in constant currency for FY25.

Amit Chadha, CEO and managing director, L&T, said, “Our ‘Go Deeper to Scale’ strategy under which we made focussed investments in the first half of the current fiscal has started yielding results. The large deal pipeline has seen robust addition on the back of engagements with customers on both new age product and platform development and business transformation.”

Growth was primarily driven by the company’s technology and sustainability segments, with an improving demand outlook in both areas. In technology, LTTS saw an 11.1 per cent sequential growth, fueled by ramp-ups in MedTech, hyperscalers, and communication providers. Sustainability growth rose by 4 per cent sequentially, supported by demand for plant modernization and automation.

The EBIT margin stood at 16.2 per cent, up by 110 basis points quarter-on-quarter, excluding one-time non-operational M&A expenses and accounting for wage hikes. "We continue to aspire for EBIT margins to be better in H2 compared to H1, on our organic book of business," said Chadha.

In terms of geographical growth, L&T, similar to its larger peers, saw strong performance from India (5.6 per cent QoQ) and the rest of the world (6.5 per cent). North America experienced a slight dip of 0.2 per cent QoQ but showed a 1.2 per cent increase YoY. Europe had flat sequential growth (0.6 per cent) but saw a significant 17.6 per cent YoY increase.

Despite the strong overall growth, the company’s headcount decreased by 233 employees. By the end of the third quarter, the total headcount stood at 23,465, with an attrition rate of 14.4 per cent, according to the exchange filing.