This midcap stock is a leading global provider of engineering research and development services, specializing in digital engineering, consultancy, and product development solutions. The stock has jumped 4.54 percent after securing a digital engineering transformation deal worth approximately Rs. 762 crore ($88 million)
Stock Price Movement
In Wednesday’s trading session, L&T Technology Services Limited’s share jumped to an intraday high of 4.54 percent from the previous close of Rs. 5,122.40. The stock opened at Rs. 5,125.10 and is currently trading at Rs. 5,279.95, with a high of Rs. 5,355 and a low of Rs. 5,125.10. The market capitalization now stands at approximately Rs. 55,902.87 crore.
What Happened
L&T Technology Services (LTTS) has secured a multiyear deal for $80 million (approx. 761.9 crore) with a US-based industrial products manufacturer. This partnership will help the client accelerate its digital transformation using advanced technologies, including connected products and digital threads.
The company will set up a Center of Excellence (CoE) in India, which will serve as a global hub for innovation, supporting the client’s digital transformation and product lifecycle management. The project aims to expand the client’s global presence by adopting new-age digital technologies. LTTS plans to use its engineering expertise to drive innovation and help the client stay ahead in a competitive market.
Future Outlook
L&T Technology Services Limited remains a strong deal pipeline, including large deals in the $25-100 million range. The revenue guidance for FY25 is 10 percent growth, with organic growth around 8 percent and an EBIT margin target of 16 percent.
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Order book
L&T Technology Services achieved its highest-ever large deal bookings in Q3, securing eight significant deals across various segments. Notable deals include a $50 million deal, two over $35 million, two over $25 million, and three over $10 million.
Additionally, the company added strong deals to its pipeline, focusing on product development and business transformation. Key deals include a $50 million deal for product integration services, a media company deal for next-gen products, and a healthcare OEM engagement for supply chain optimization.
Strategic Focus
The company aims to capture market share and accelerate growth by investing in technology and leadership. The company focuses on building three $1 billion segments, targeting $2 billion in revenue and 17-18 percent EBIT margins in the medium term.
Recent quarter results
L&T Technology Services Limited’s revenue has increased from Rs. 2,148 crore in Q2 FY24 to Rs. 2,412 crore in Q2 FY25, which has grown by 12.29 percent. The net profit has dropped by 6.23 percent, from Rs. 321 crore in Q2 FY24 to Rs. 301 crore in Q2 FY25.
Written By – Nikhil Naik
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