L&T Tech Q3 Results: Profit falls 6% YoY to Rs 303 crore, revenue rises 10%

Mid-tier IT services company L&T Technology Services reported a 6% year-on-year (YoY) decline in its consolidated net profit at Rs 303 crore in the third quarter. The same stood at Rs 322 crore in the year-ago period. Excluding the impact of labour codes, the company said its profit rose 2% YoY to Rs 329 crore.

Revenue from operations in the same period increased 10% YoY to Rs 2,923 crore as against Rs 2,653 crore in the corresponding period of last year.

Revenue in dollar terms came in at $326.3 million for the quarter, down 3.2% QoQ and up 4.6% YoY. In constant currency terms, revenue was down 2.8% QoQ and up 3.9% YoY


EBIT for the quarter stood Rs 427 crore in the December quarter, while EBIT margins came in at 14.6%.

The company said this was the fifth consecutive quarter in which it recorded deal wins with total contract value of more than $200 million. During the quarter, L&T Technology Services secured several large deals, including a $70 million contract from a global original equipment manufacturer, a $30 million deal, a $20 million programme, and five additional deals each valued at more than $10 million.

Management said the momentum in deal wins underlines the company’s positioning in areas such as AI-led engineering services, digital transformation and sustainability-focused solutions. The sustainability segment continued to post double-digit growth on a year-on-year basis, while the mobility business showed early signs of recovery after a period of weakness.

"We sustained the momentum in large deal wins delivering an average TCV of $200 million for five consecutive quarters. The Sustainability segment continued to grow double-digit on a YoY basis while Mobility is seeing a turnaround," said Amit Chadha, CEO & MD, L&T Tech.

At the end of third quarter, the patents portfolio of L&T Tech stood at 1,655, out of which 1,007 are co-authored with clients and the rest are filed by LTTS.

Chadha said L&T Tech is aligning its strategy with its five-year Lakshya plan, under which it is focusing on high-growth and high-margin areas. He noted that this approach is beginning to reflect in financial performance, with a 120 basis point improvement in EBIT margin on a quarter-on-quarter basis.