L&T Tech Services (LTTS) Q2 Results: Net profit rises 1% sequentially to Rs 315 crore, meets analysts' expectations

Engineering research and development services provider L&T Technology reported its financial results for the September quarter on October 17.

LTTS reported a set of financial results for Q2 that were in line with Street estimates. | Image: ltts.com

L&T Technology Services (LTTS) on Tuesday reported a consolidated net profit of Rs 315.4 crore for the July-September period, in line with analysts' estimates. The net profit registered an increase of 1.4 per cent on a sequential basis.

LTTS, a provider of engineering research and development (ER&D) services, reported consolidated revenue of Rs 2,386.5 crore for the second quarter of the financial year, marking a quarter-on-quarter rise of 3.7 per cent, according to a regulatory filing.

According to Zee Business research, the company's quarterly net profit was estimated at Rs 311 crore and revenue at Rs 2,385 crore.

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The company said its revenue in dollar terms stood at $288.1 million, and increased 3.2 per cent sequentially in constant currency.

The company's EBIT margin came in at 17.1 per cent for the July-September period as against 17.2 per cent for the previous three months. Zee Business analysts had pegged the margin at 16.1 per cent.

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“Deal momentum was strong with the highlight being a $10 million-plus deal win leveraging SWC capabilities in North America. This win has been the result of having a superior end-to-end technology stack for wireless and 5G communications which is becoming a key differentiator for us. We are investing in software-defined vehicles, AI and cybersecurity and will have close to 2,000 employees trained over the next few quarters. Our collaboration with hyper-scalers and chip companies is helping us develop AI solutions and services that address the needs of industries like auto, manufacturing and medical," said Amit Chadha, CEO and Managing Director, L&T Technology Services.

During the quarter, LTTS won a total of seven $10 million-plus TCV deals across all industry segments including six deals of $15 million each.

"We are optimistic that such investments will strengthen our position as the engineering partner of choice for global ER&D companies," he added.

The company's board declared an interim dividend of Rs 17 per share with a record date of October 27.

LTTS shares finished the day 1.4 per cent weaker at Rs 4,623 apiece on BSE ahead of the earnings announcement.

LTTS shares: Past performance

As of October 16, LTTS shares had grown more than 29 per cent in the past year, sharply outperforming a 14.5 per cent rise in the headline Nifty50 index.

The LTTS stock finished the September quarter 16.4 per cent stronger, as against a 2.4 per cent rise in the 50-scrip gauge.

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