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

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. 

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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