EconomyCompanies
L&T Technology Services profit rises 67% on business sale gain, AI drives half of big deals
The engineering services firm signed more than $200 million of large contracts in the quarter and said it expects revenue growth to pick up in the second half of the year.
Key points
- Net profit rose 66.8% to about ₹548 crore, including a one-time gain of about ₹165 crore.
- Large deals worth more than $200 million were signed, over half of them AI-related.
- LTTS declared an interim dividend of ₹20 a share, with a record date of 27 October.
L&T Technology Services, the engineering services arm of the Larsen & Toubro group, reported a 66.8% jump in quarterly profit on Monday, lifted by a one-time gain from selling part of its business, and said AI work now makes up more than half of its big new contracts.
Net profit for July-September rose to about ₹548 crore, including a gain of about ₹165 crore from the sale of its SWC business. Revenue grew 12.1% from a year earlier to about ₹3,040 crore, and 3.4% from the previous quarter. In dollars, revenue was $317.1 million, up 3.3% from a year earlier. In constant currency, which strips out exchange rate moves, it grew 4.8% from a year earlier and 2.7% from the June quarter.
The operating margin improved to 16.3%, up 2.2 percentage points from a year earlier and 0.6 point from the previous quarter.
Bigger deals, more AI
The company signed large deals with a total contract value of more than $200 million in the quarter, with AI-related work accounting for over half. They included one deal worth $75 million, one above $30 million, one of $25 million and six worth more than $10 million each.
Amit Chadha, the chief executive and managing director, credited the company’s investments in what it calls Engineering Intelligence, and its spread of businesses, for “accelerated sequential growth across revenue, profitability, large deals and AI revenue”. He said he expects “revenue momentum to strengthen further in the second half of the fiscal year” while keeping margins healthy.
The board declared an interim dividend of ₹20 a share, with 27 October as the record date. The company had 24,035 employees at the end of September.
The numbers follow a strong run of results from larger IT companies such as TCS and Tech Mahindra that drove the Nifty IT index to its best week in nearly 18 years. LTTS shares will react on Wednesday, after Tuesday’s Dussehra holiday.