CEO of L&T Tech said the company grew in Q4 and gained market share in the technology sector

Despite the fact that the results fell short of market expectations, L&T Technology Services announced on Thursday an increase in sales and profit as a consequence of strong performance in industries including telecom and hitech and plant engineering. For the fiscal year 2025, the corporation projects sales growth of between 8 and 10%.

 

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During the January–March period, consolidated sales climbed by 4.4% on a quarterly basis to Rs 2,537.50 crore, while profit improved sequentially by 1.4% to Rs 340.9 crore. Nevertheless, these amounts were less than the Rs 2,546 crore and Rs 348 crore estimates made by Bloomberg, respectively.

The CEO of L&T Technology Services, Amit Chadha, said to FE during a conversation that the company had produced 1,300 crore of PAT and was at 1,000 crore PAT in FY22 two years before. Over the last three years, there has been a 16% CAGR in sales and a 25% CAGR in earnings. Consequently, earnings have increased more quickly than sales.

The company’s operating margin, or profits before interest and taxes, decreased by 30 basis points from the previous quarter to 16.90% in the January–March period, in spite of these increases.

Chadha gave the following explanation on the margin: “This year, we’ve consistently aimed for about a 17% margin, which we achieved.” We stayed inside that range because to some investments we made that were in line with our advice.

In Q4, the engineering services provider signed its first-ever cybersecurity transaction at $100 million. In addition, the business closed two $20 million projects, a $10 million project, and a $30 million contract throughout the quarter.

About 100 proof of concept agreements using artificial intelligence are held by L&T Tech. Two major projects and over 100 Proofs of Concept are now underway. 50% of the 100 POCs have been paid, and 50% have not. 3,500 individuals have received training in this field, according to Chadha.

Additionally, the business had sequential sales growth in all of its business segments, with the exception of industrial goods and medical devices. For the quarter that ended in March, revenue from its main sector—transportation—grew by 1.2%, and for the fiscal year 2024, it increased by 11.5%.

“Medical devices and industrial goods will also be somewhat lower in FY25. Not decrease, but growth will be a little slower than in previous years. Transportation will definitely be double digits, Chadha said.

In the hitech sector, he also said that the firm is increasing market share. In constant currency, the company’s telecom and hardware revenue increased by almost 21% from quarter to quarter.

The business is also reorganizing its segments. “We have divided our businesses into three groups of three. Therefore, I do anticipate more mobility. Plant engineering will no doubt contribute to the rising trend of sustainability. Additionally, he said, “I anticipate that certain areas of high technology will expand, driven by semiconductors, software-defined everything, and cyber.”

The business will keep recruiting on campuses and expects to employ 1,500–2,000 recent grads in FY25.