Massive Rs 33/Sh Dividend By Larsen's IT Stock, 1650% Payout Soon; LTTS Earns Profit Of Rs 341 Crore In Q4

L&T Technology Services (LTTS) has registered a net profit of Rs 340.9 Crore in the fourth quarter of FY24, registering growth of 1.4% QoQ and 0.2% YoY. This Larsen & Toubro-backed IT company has also announced its highest dividend payout of Rs 33 per share or 1,650% in eight years.

LTTS Earnings:

In Q4FY24, LTTS earned a net profit of Rs 340.9 crore, up by 1.4% sequentially and 0.2% year-on-year. Net margins came in at 13.4%. Meanwhile, revenue from operations stood at Rs 2,537.5 crore, up by 4.8% QoQ and 7% YoY. In constant currency, revenue growth stood at 5.1% QoQ and 6.3% YoY. In dollar terms, Revenue of $305.1 million for the quarter, logged growth of 5.0% QoQ and 5.8% YoY.

Also, in the quarter, EBIT stood at Rs 428.2 crore for the quarter; EBIT margin at 16.9%.

For FY24, net profit jumped by 7.6% YoY to Rs 1,303.7 crore, while net margin is at 13.5%. Further, revenue emerged to Rs 9,647.3 crore, up by 9.4% YoY, while the constant currency revenue growth was at 17.9%.

Amit Chadha, CEO & Managing Director, L&T Technology Services Limited said, "We are proud of the milestones achieved in FY24 which include the successful integration of
SWC into LTTS, securing several significant wins in cybersecurity and next-generation communications supported by a comprehensive portfolio, filing 54 patents in AI along with a total of 1,296 patents to date, and developing a robust pipeline of opportunities in the Software-Defined Vehicle (SDV) domain."

LTTS Dividend:

LTTS has announced a final dividend of 1650 % i.e. Rs. 33/- per equity share of the face value of Rs 2.00/- each, subject to the approval of the shareholders of the company, which if approved, shall be paid/dispatched within thirty days from the conclusion of the Annual General Meeting of the Company. The Record date for the final dividend shall be intimated later.

Earlier, for FY24, the company paid an interim dividend of Rs 17% or 850%. In FY23, the payout was to the tune of a whopping 2,250% valuing Rs 45 per share.

On the current market price, LTTS dividend yield is 0.87%.

LTTS Share Price:

LTTS share price ended at Rs 5180.95 apiece, down by 0.97% on BSE. The stock's 52-week high and low are at Rs 5,884.95 and Rs 3,399.55 apiece respectively.

The company's market cap is at Rs 54,790.54 crore.

LTTS AI Focus:

Chadha added, "With a strong 5.1% sequential growth in Q4, our revenue run-rate has now crossed the $1.2Bn run-rate, a year after we moved past the $1Bn mark. We won a landmark $100 million deal in cybersecurity where we will architect and operate a sophisticated cyber intelligence centre by leveraging AI and Digital Forensic solutions."

He further said, "Our disciplined investments into new technology areas have enabled us to win larger engagements and drive a 16% CAGR in dollar revenue and 25% CAGR in profits, over the past 3 years."

Moreover, he also said, "We are now embarking on the next stage of growth with a 'Go Deeper to Scale' strategy under which we will streamline our organization into 3 segments - Mobility, Sustainability and HiTech. This cohesive structure will enhance our agility and domain specialization to unlock higher value for customers and employees."

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.