Engineering services firm L&T Technology Services Limited (LTTS) unveiled its Q2 financial results for the fiscal year 2023-24 on Tuesday. The company reported a Q2 profit of Rs 315.40 crore, marking a 5.2% increase compared to Rs 299.90 crore in the second quarter of FY23. Revenue from operations reached Rs 2,386.50 crore, reflecting a 4.6% growth when contrasted with Rs 2,281.70 crore for the same period in the prior year. L&T Technology Services achieved USD revenue of $288.1 million, signifying a 2% year-on-year increase, with an EBIT margin of 17.1%.
Furthermore, the Board of Directors declared an interim dividend of Rs 17 per equity share. The company specified, "The interim dividend will be disbursed to equity shareholders whose names appear in the register of members or in the records of the depositories as beneficial owners of equity shares as of Friday, October 27, 2023, which is the designated record date for this purpose," according to a regulatory filing.
During the reviewed quarter, LTTS secured a total of seven TCV deals exceeding $10 million each across various industry segments, including six deals valued at $15 million each.
We delivered a robust performance with sequential revenue growth of 3.2% in constant currency, while maintaining an operating margin exceeding 17%, even as we accommodated wage increases for our workforce. Notably, we achieved strong deal momentum, with a standout win of over USD 10 million, capitalizing on our SWC capabilities in North America. This success can be attributed to our advanced end-to-end technology stack for wireless and 5G communications, which sets us apart," stated Amit Chadha, CEO & Managing Director of L&T Technology Services Limited.
He further commented, "Our investments are focused on software-defined vehicles, artificial intelligence, and cybersecurity, with plans to train nearly 2,000 employees in these areas over the upcoming quarters. Collaborations with hyperscalers and chip companies are enabling us to develop AI solutions and services that cater to the specific needs of industries such as automotive, manufacturing, and healthcare. We hold an optimistic outlook that these investments will reinforce our position as the preferred engineering partner for global ER&D companies.
At the conclusion of Q2FY24, LTTS reported that the company's patent portfolio consisted of 1,198 patents, with 785 of them being co-authored with its clients, while the remainder were filed by LTTS. The company's workforce numbered 23,880 employees at the close of Q2FY24.
LTTS has also updated its guidance for USD revenue growth in FY24, setting it at 17.5-18.5% in constant currency. Amit Chadha explained, "While the long-term trends in ER&D remain robust, we are currently witnessing prolonged decision cycles and additional challenges stemming from macroeconomic pressures in various regions. Consequently, we are revising our USD revenue growth projection for FY24 to 17.5-18.5% in constant currency."
LTTS is a publicly listed subsidiary of Larsen & Toubro Limited, specializing in Engineering and R&D (ER&D) services.
