In the same reporting period, revenue from operations rose by 8% year-on-year (YoY) to Rs 2,573 crore, compared to Rs 2,386 crore in the previous year.
On a sequential basis, the company’s revenue increased by 4% quarter-on-quarter (QoQ), while, in dollar terms, it grew 6% YoY to $307 million. However, the EBIT margin for the quarter stood at 15.1%, reflecting a decline of 50 basis points from the previous quarter.
During this quarter, LTTS secured two deals worth $20 million and four deals of $10 million in Total Contract Value (TCV). Additionally, the company entered into two significant empanelment agreements focused on sustainability.
Amit Chadha, CEO & Managing Director of L&T Technology Services, stated, “With our pipeline comprising larger-sized deals involving consolidation as well as advanced technology-led transformation, we are confident about the vision we set for ourselves and our medium-term outlook of $2 billion in revenue with an EBIT margin of 17-18%.”
Should you buy, sell, or hold L&T Technology Services’ stock? Here’s what analysts say:
Investec
Investec has maintained a ‘Sell’ rating on L&T Tech, raising its target price from Rs 3,960 to Rs 4,980. They noted that while the company reported weaker-than-expected revenue and margin performance, progress on the SWC integration—a previous concern—has been observed.
Despite these improvements, Investec views the situation as a high-risk, low-reward scenario, advising caution while maintaining confidence in their estimates.
Citi
Citi has also maintained a ‘Sell’ rating on L&T Tech, reducing its target price from Rs 4,895 to Rs 4,860. The brokerage kept its revenue guidance unchanged, highlighting a challenging target rate for the second half of the year.
Management indicated that revenues in Q3 are expected to show quarter-on-quarter growth, with margins improving despite wage hikes. However, Citi noted that even achieving the lower end of the target may prove difficult, despite improved seasonality and recent deal wins.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)