L&T Technology dips 6% despite reporting marginal surge in Q3 net profit

L&T Technology Services shares declined nearly 6.5% to Rs 5,088.20 on the BSE at 09:30 am despite reporting marginal growth in its Q3 results.

The company recorded a net profit of Rs 248.8 crore, an increase of 33.7% year on year and 8.17% sequentially.

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The company’s revenue increased by 20% year on year to Rs 1,687 crore, and it increased by about 5% quarter on quarter. At the conclusion of Q3, the company had a total workforce of 20,118 people.

Revenues from the digital business stood at 56%, which is among the best in the peer group. The EACV and the Medtech segments have shown the best traction in top-line and bottom-line growth.

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LTTS secured a $45 million contract and three deals with Total Contract Value (TCV) of $10 million or more during the quarter. Revenue from digital and cutting-edge technologies accounted for 56% of total revenue.

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“We sustained our performance trajectory with sequential growth of 4.2 per cent in constant currency led by strong demand across segments. The deal conversions and pipeline in our six big bets – Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability – continues to see healthy improvement as our customers make steady progress on their long-term transformative journeys,” said Amit Chadha, CEO & Managing Director, L&T Technology Services.

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In addition, the company is expanding its Electric, Autonomous and Connected Vehicle (EACV) worldwide footprint by opening an engineering R&D centre in Krakow, Poland, which will improve the strategic cooperation with European and global clients.

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“In line with our long-term growth prospects and strategy, we invested in hiring and onboarding a record 1,900 plus trainees leveraging our Global Engineering Academy that is focused on continuous training and upskilling. Despite the robust employee addition, we further improved our operating margin to 18.6%, reflecting gains from investments in talent and innovation,” said Chadha.