L&T Technology Services (LTTS) reported a marginal increase of 0.2 per cent in net profit for the March quarter, totaling Rs 340 crore amidst a backdrop of slower revenue growth and reduced margins.
Despite these challenges, the company’s revenue saw a 7 per cent rise to Rs 2,537.5 crore compared to the same period last year, and a 5 per cent increase from the preceding quarter. For the fiscal year 2024, LTTS achieved a 7.6 per cent growth in net profit, reaching Rs 1,303.7 crore.
Amit Chadha, Managing Director and Chief Executive of LTTS, explained that the annual revenue increase was buoyed by contributions from Smart World, a recently acquired entity. However, Chadha anticipates a “slightly muted” margin in the near term as the company gears up to ramp up investments in several critical technological areas, including software-defined vehicles, electric vehicle hybridisation, artificial intelligence, cyber security, embedded systems and hyperscaler technologies.
For the Q4, the operating profit margin was reported at 16.9 per cent, a decline from 17.9 per cent a year earlier and 17.2 per cent in the previous quarter. Despite the narrowing margins, Chadha noted that the company is not experiencing any pricing pressures.
Further restructuring the organisation, LTTS has streamlined its business verticals from five to three—mobility, sustainability and high tech—to better focus on core areas and respond more agilely to market demands. The restructuring process, which has been underway for the last 3 to 6 weeks, also includes several structural adjustments.
In a significant push towards expansion, LTTS has increased its workforce by nearly 800 employees over the past year, bringing the total to 23,812. The company plans to add another 500 employees in the first quarter of the fiscal year, including both freshers and experienced professionals.
On the business front, LTTS secured multiple new deals, including a USD 100 million contract, alongside other agreements valued at USD 30 million, USD 20 million, and USD 10 million.
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