A leading global engineering services powerhouse, renowned for its comprehensive solutions in product engineering and digital transformation, sets ambitious growth targets for the upcoming fiscal year.
The company’s recent announcement reveals plans for a 10% revenue expansion in FY25, supported by strategic acquisitions and reaffirming its path toward a $2 billion revenue with strong profit margins.
Share Price Movement
The share price of L&T Technology Services Limited hit an intraday high of 10 percent to Rs. 5,336.90 per share on Thursday, an increase from its previous close of Rs. 4,851.75 per share. The market capitalisation now stands at approximately Rs. 55,325 crore as of January 16, 2025.
What driving price?
L&T Technology Services Ltd. (LTTS) reported its highest-ever large deal bookings during the December quarter, including eight significant deals: one for $50 million, two for $35 million, two for $25 million, and three for $10 million. Following the Q3 results, which fell short of expectations, company management provided updated guidance.
Furthermore, L&T Technology Services is targeting around 10% revenue growth for the financial year 2025, with contributions from Intelliswift.
CEO and Managing Director Amit Chadha stated, “For FY25, our guidance is for near 10% revenue growth in constant currency, including the contribution from Intelliswift. We reaffirm our medium-term outlook of $2 billion revenue with an EBIT margin of 17-18%.”
Financial Highlights – (Recent Q3 Update)
In Q3FY company reported revenue of Rs. 2,653 crore, a 9.5% YoY growth and a decline in net profit of 6.23% to 301 YoY.
In FY2024, The company reported revenue growth of 9.7%, increasing from Rs. 7,910 crore in FY2023 to Rs. 8,679 crore in FY2024. Profits rose by 9.1%, from Rs. 1,153 crore in FY2023 to Rs. 1,258 crore in FY2024.
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Competitors
L&T Technology Services (LTTS) operates in a competitive landscape with key competitors such as Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Mindtree, Data Science Automation, and other IT service companies.
L&T Technology Services is currently trading at a P/E of 44 which is higher than the industry P/E of 33.
Market Outlook
India’s technology and innovation landscape is thriving, driven by robust demand, with AI adoption at 48% and a projected market of $17 billion by 2027. Government policies like SERB-SURE and patent fee reductions encourage R&D, while initiatives like “Make in India” and Atmanirbhar Bharat boost sectors like drones.
With increased private investment in R&D and over Rs. 1,000 crore in space startups, alongside global recognition for innovation, India is poised to strengthen its position as a global leader in technology and research.
Written By Fazal Ul Vahab C H
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