LTTS Q3 Profit Slips 4.1% to Rs 322.4 Cr: Margin Narrows
By Rediff Money Desk, Mumbai Jan 15, 2025 18:33
LTTS's Q3 net profit declined by 4.1% to Rs 322.4 crore due to lower profit margins. Revenue rose 9.5% to Rs 2,653 crore. Read more.

Mumbai, Jan 15 (PTI) L&T Technology Services on Wednesday reported a 4.1 per cent decline in its December 2024 quarter net profit to Rs 322.4 crore due to narrowing of profit margins.
The city-headquartered company had reported a net profit of Rs 336.2 crore in the October-December period last year and Rs 319.6 crore in the preceding September quarter.
Its revenues jumped 9.5 per cent year-on-year to Rs 2,653 crore in the December quarter from Rs 2,422 crore in the year-ago period.
Its chief executive and managing director Amit Chadha said the tech and sustainability verticals reported a healthy growth of 3.5 per cent and 7.5 per cent, respectively, but the mobility business was soft at 4.7 per cent due to seasonal furloughs and broader trends in the sector.
He, however, exuded confidence that the company will be able to report faster growth on mobility as well, stating that the vertical also comprises air and rail apart from auto.
On the profitability front, the operating profit margin narrowed to 15.9 per cent from 17.2 per cent in the year-ago period.
Chadha said that salary hikes had a 1 percentage point impact, while a recent acquisition also proved to be a drag.
He said rising revenues and automation will help it expand the number further, and reiterated that the company is committed to getting it into the 17-18 per cent level in the medium term.
He pointed out that the overall employee base remained almost the same at 23,465 at the end of December, even as revenues have risen by nearly 10 per cent.
The overall headcount declined by over 200 people during the December quarter, and Chadha said this is not a worry for the company.
The company will close Q4 with an annual revenue run rate of USD 1.5 billion against USD 1.25-1.3 billion at present, he said.
Without disclosing the exact number, Chadha said the net total contract value addition in the December quarter was at the highest level.
The pipeline is healthy and there is a possibility of adding another client in the over USD 50 million billing bracket soon, he added.
There were shifts in the billing categories during the quarter largely due to the currency fluctuations, as clients moved down the ladder, he said.
LTTS scrip closed 3.1 per cent up at Rs 4,852.75 apiece on the BSE against gains of 0.29 per cent on the benchmark on Wednesday.
The city-headquartered company had reported a net profit of Rs 336.2 crore in the October-December period last year and Rs 319.6 crore in the preceding September quarter.
Its revenues jumped 9.5 per cent year-on-year to Rs 2,653 crore in the December quarter from Rs 2,422 crore in the year-ago period.
Its chief executive and managing director Amit Chadha said the tech and sustainability verticals reported a healthy growth of 3.5 per cent and 7.5 per cent, respectively, but the mobility business was soft at 4.7 per cent due to seasonal furloughs and broader trends in the sector.
He, however, exuded confidence that the company will be able to report faster growth on mobility as well, stating that the vertical also comprises air and rail apart from auto.
On the profitability front, the operating profit margin narrowed to 15.9 per cent from 17.2 per cent in the year-ago period.
Chadha said that salary hikes had a 1 percentage point impact, while a recent acquisition also proved to be a drag.
He said rising revenues and automation will help it expand the number further, and reiterated that the company is committed to getting it into the 17-18 per cent level in the medium term.
He pointed out that the overall employee base remained almost the same at 23,465 at the end of December, even as revenues have risen by nearly 10 per cent.
The overall headcount declined by over 200 people during the December quarter, and Chadha said this is not a worry for the company.
The company will close Q4 with an annual revenue run rate of USD 1.5 billion against USD 1.25-1.3 billion at present, he said.
Without disclosing the exact number, Chadha said the net total contract value addition in the December quarter was at the highest level.
The pipeline is healthy and there is a possibility of adding another client in the over USD 50 million billing bracket soon, he added.
There were shifts in the billing categories during the quarter largely due to the currency fluctuations, as clients moved down the ladder, he said.
LTTS scrip closed 3.1 per cent up at Rs 4,852.75 apiece on the BSE against gains of 0.29 per cent on the benchmark on Wednesday.
Source: PTI
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