LTTS Q1 Results: Net Profit At Rs 313.6 Crore, Revenue Rises 7% YoY, Gen-AI Drives Deals

L&T Technology Services, an IT arm of Larsen & Toubro, reported a net profit of Rs 313.6 crore in the quarter ending June 2024 period, registering a marginal growth of 0.8% year-on-year. While its revenue climbed by 7% YoY to Rs 2,461.9 crore. LTTS is a leading pure-play engineering services company.

In dollar terms, revenue stood at $295 million, while its constant currency revenue growth came in at 6% YoY. EBIT margins stood at 15.6%.

In the quarter, LTTS won two USD 30 million deals, two USD 15 million deals and three deals with TCV of USD 10 million.

Amit Chadha, CEO & Managing Director, L&T Technology Services Limited said, "We are making good progress with our 'Go Deeper to Scale' strategy and the simplification of our organization structure into three main segments. Mobility grew by 6% sequentially driven by our differentiated presence across EV, SDV and connected car technology that helped us win one $ 30 Million deal and two $15 Million deals during the quarter. 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."

In AI, Chadha said, "We are accelerating our investments and innovation focus leading to a total of 61 patents being filed so far. We are starting to win AI-led deals on the back of our solutions in Gen AI across Asset Health, software development and digital assistants."

Further, the CEO added that with phase one of our reorganization and related investments in technology and leadership complete, the company is reassured of its performance for the rest of the year and reaffirms its aspirations to reach $1.5 Billion in annualized revenues.

At the end of Q1FY25, the patents portfolio of L&T Technology Services stood at 1,343, out of which 853 are co-authored with its customers and the rest are filed by LTTS.

While by the end of Q1FY25, the company's headcount stood at 23,577.

LTTS share price ended at Rs 4,845.20 apiece on BSE, down by 0.50% with market cap of Rs 51,276.42 crore.

L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. The company offers consultancy, design, development and testing services across the product and process development life cycle.