L&T Technology Services sees marginal profit rise

19 Jul 2024 , 12:45 PM

L&T Technology Services reported a net profit of ₹313.6 Crore for the quarter ending on July 18, marking a slight increase of 0.8 %from the ₹311.1 Crore reported in the same period last year, according to an exchange filing. Despite this year-over-year growth, the net profit for the June quarter showed a nearly nine %decline from the ₹340.9 Crore posted in the March quarter.

Amit Chadha, CEO and managing director of L&T Technology Services Limited, highlighted the company’s progress with their ‘Go Deeper to Scale’ strategy and the reorganization into three main segments.

The company has been making significant strides in artificial intelligence (AI), accelerating investments and focusing on innovation. To date, they have filed a total of 61 patents related to AI. Chadha emphasized the company’s success in securing AI-led deals, particularly in generative AI across areas like asset health, software development, and digital assistants.

At the time of writing on July 19, 2024 at 12:31 pm shares of L&T Technology Services is  currently trading at ₹4848 which is a 0.028% dip than the previous close. L&T Technology Services stock has gained a total of 17% in the last one year, and witnessed a 6.9% dip since the beginning of the year.

Revenue from operations for the reported quarter stood at ₹2,461.9 Crore, reflecting a seven %increase from ₹2,301.4 Crore in the corresponding period last year. However, there was a three %decline in revenue compared to the ₹2,537.5 Crore reported in the March quarter. Despite this quarterly dip, the company remains optimistic about its financial performance for the rest of the year.

In the quarter ending June 30, L&T Technology Services secured two deals worth $30 million each, another two deals worth $15 million each, and three deals with a total contract value (TCV) of $10 million. These wins are expected to bolster the company’s growth trajectory.

Chadha also mentioned that with the completion of phase one of their reorganization and related investments in technology and leadership, the company is confident in its performance outlook for the rest of the year. L&T Technology Services continues to aspire towards achieving $1.5 billion in annualized revenues.

Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate with diverse interests in industrial technology, heavy industry, engineering, construction, manufacturing, power, information technology, military, and financial services. The company is headquartered in Mumbai, Maharashtra.

L&T was founded in 1938 in Bombay by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro. As of March 31, 2022, the L&T Group comprises 93 subsidiaries, five associate companies, 27 joint ventures, and 35 jointly held operations. These entities operate across various sectors including basic and heavy engineering, construction, realty, capital goods manufacturing, information technology, and financial services.

On October 1, 2023, S N Subrahmanyan took over as the Chairman and Managing Director of L&T, leading the company towards its future growth and strategic goals.