L&T Tech shares rally 4% ahead of Q3 results; five things you need to know

The top-line growth in mid-sized IT firms is expected to be in the range of 4% to 10% as per consensus estimates.

Shares of the company jumped over 4% to ₹4,905 apiece on the NSE.

L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on engineering and R&D (ER&D) services. The company offers consultancy, design, development, and testing services across the product and process development life cycle.

Its customer base includes 69 Fortune 500 companies and 51 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries.

L&T Tech Q2 FY25 Results

The company, an arm of engineering, procurement, and construction major Larsen & Toubro, had reported a net profit of ₹315.4 crore in the year-ago period while the was ₹313.6 crore in the preceding June quarter.

Its revenues grew 7.8% to ₹2,572.9 crore in the reporting quarter, helped by over 24% growth in the European market on demand from the automobile sector and sustainability-focused solutions.

LTTS Managing Director and Chief Executive Amit Chadha said it is aiming for revenues to grow between 8-10% in FY25 and maintaining its guidance on hitting the $2 billion yearly revenue in the medium-term mark.

Higher spending on sales and technology led to a narrowing of the operating profit margin to 15.1% during the reporting quarter, as against 17.1% in the year-ago period and 15.6% quarter-ago.

The company also announced an interim dividend of ₹17 per share, and the record date for the same was October 25, 2024.

Hiring update

During the Q2 results announcement, CEO Amit Chadha said the company would be hiring 2,000 freshers in FY25, and offers were already being made on the same. The company also expected the attrition levels to be stable or improve further from the current levels.

Acquisition of California firm Intelliswift

In November 2024, LTTS signed a definitive agreement to acquire Silicon Valley-based IT firm Intelliswift Software Inc. for an aggregate consideration of up to $110 million.

The acquisition, according to the firm, will deepen its offerings across software product development, platform engineering, digital integration, data, and artificial intelligence (AI). It will also provide LTTS access to marquee clients in retail, fintech, and hi-tech while strengthening its relationship with hyperscalers.

Expansion of alliance with Siemens

In December 2024, L&T Technology Services (LTTS) announced the expansion of its collaboration with Siemens Digital Industries Software (SDIS). Under this collaboration, the two firms will enhance their center of excellence with the incubation of new technologies for sectors like automotive, aerospace, electronics, energy, healthcare, and industrial machinery.

A major feature of the expanded alliance is the establishment of a Digital Manufacturing Academy, aimed at training engineers in Siemens’ core technologies, the company had said.

LTTS share price performance

Shares of the company have slipped over 13% in the past 12 months. In comparison, the NIFTY IT index has rallied over 15% during the window.

Meanwhile, the benchmark NIFTY50 index has gained 5% in one year.