L&T Technology Services (LTTS) has announced a notable uptick in revenue for the first quarter of 2023, primarily driven by advancements in its technology and sustainability sectors. However, despite this growth, the company’s net profit experienced a slight decline attributed to the recent acquisition of Intelliswift.
Quarterly Revenue Growth Highlights
In the period from January to March, LTTS recorded a 12.4% increase in consolidated revenue, reaching Rs 2,982.4 crore compared to the previous quarter. However, the operating margin dipped to 13.2%, down from 15.9% in the December quarter. This shift contributed to a 3.5% decrease in net profit, which amounted to Rs 311.1 crore.
- Revenue: Rs 2,982.4 crore
- Operating Margin: 13.2%
- Net Profit: Rs 311.1 crore
CEO Insights on Growth
Amit Chadha, CEO and Managing Director of LTTS, expressed confidence in the company’s performance, stating, “We maintained our leading growth momentum with a 10.7% quarter-on-quarter increase, marking our third consecutive quarter of sequential growth.” He emphasized that the company’s revenue growth of 8.9% in constant currency for FY25 was achieved despite a challenging market landscape. This success can be attributed to enhanced client engagements and innovative service offerings across three key segments, alongside a historic surge in deal momentum that began in the latter half of FY25.
Record Deal Bookings
LTTS reported an impressive record in deal bookings for the March quarter, which included:
- One deal worth $80 million
- One deal worth $50 million
- Additional deals of $30 million, $20 million, and three deals of $10 million
Chadha noted, “Our large deal pipeline remains strong, driven by value enhancement throughout clients’ product lifecycles and their digital transformation journeys.” He highlighted that half of the substantial deals in this quarter were concentrated in the highly profitable sustainability segment.
Segment Performance Overview
The sustainability sector, LTTS’s largest vertical, saw a 28% sequential increase, contributing 42.1% in constant currency during the March quarter. Meanwhile, the technology segment’s contribution rose by 1.9%, reaching 28.7%. Conversely, revenue from the mobility segment saw a modest decline of 0.2%, settling at 29.2%.
Geographical Revenue Distribution
Geographically, LTTS experienced significant revenue growth:
- North America: Up by 11.4%
- Europe: Up by 0.6%
- India: Up by 18.8%
- Rest of the World: Up by 5.5%
Workforce Expansion and Attrition Rates
The company’s workforce grew by 793 employees in the quarter, bringing the total count to 24,258. Notably, the attrition rate improved slightly, decreasing by 10 basis points to 14.3%.
Looking Ahead: Positive Projections for FY26
Looking forward, LTTS anticipates that FY26 will surpass FY25, projecting double-digit revenue growth in constant currency. Chadha remarked, “While the global macro-economic landscape continues to evolve with some caution due to tight market conditions, we are focused on operational strategies to sustain our strong performance.”
In summary, LTTS’s recent performance underscores its resilience and growth potential, positioning itself strategically in the tech and sustainability sectors for continued success. For more insights on LTTS and its market strategies, you can explore their official website.
