Speaking about recent achievements, Chadha said that LTTS has recorded its highest number of deal wins in recent times, including eight significant contracts ranging from $10 million to $50 million.
He expressed optimism about the future, citing a stronger demand environment compared to last year and anticipating FY26 to outperform FY25.
The company reported a net profit of ₹322.4 crore, slightly below CNBC-TV18’s estimate of ₹330 crore. The company’s revenue reached ₹2,653 crore, reflecting a year-on-year (YoY) growth of 9.5% compared to the same quarter last year, and a sequential growth of 3.1%.
The current market capitalisation of the company is ₹55,742.21 crore.
These are the edited excerpts of the interview.
Q: Organic growth of 8% for 2024-25 would imply a January-March 2025 quarter revenue growth of 7% on a sequential basis. What makes you confident of achieving this?
A: I should say that we don’t give quarter guidance, so I will stick to my annual numbers and whatever comes out of the quarter, will happen.
Now why am I confident? Number one is that if I look at our pipeline, our pipeline is better than what it was at the same time last year as well as last quarter. If you look at the number of deals we have closed, this is the highest number of deal wins that we have had in the recent past. If you look at it, there have been eight wins. So there has been a 50 million win, there have been two 35 million wins, there have been 25 million wins, and there have been 10 million wins. And these all go into revenue realisation in the current quarter. Some of it came through last quarter, but the rest of it comes this quarter onwards.
We have been investing all throughout in generative artificial intelligence (Gen AI), we stand at more than 175 patents in that area alone, and the company has yet again filed 50 patents in the current quarter as well overall total. So the technology push that we have been giving is starting to pay off for us, and we are seeing deal conversions. In fact, in the medical deal, we won, the industrial deal we won, and the media deal we won, three of them we have sold – part of the service offering has been to sell the packaging of our reusable assets and AI-Gen AI as well. So that will help us as we plough through next quarter and beyond as we grow.
Q: Your 2024-25 organic growth of around 8% is at the lower end of that 8-10% guidance. Would you say that there is some downward assessment to your organic guidance, and also, you had a margin guidance of around 16% for 2024-25, maintain it?
A: We gave a band – 8-10%. When we give the band, we can come in anywhere in that in that band. So you can’t assume that you will always be at the upper end. And this is a number of factors. This has decision-making, and this has deal velocity. This has the overall demand environment, etc.
Also Read | Five reasons why L&T Technology Services shares surged 9% after Q3 results
As I see today, the demand environment is better today, as opposed to the same time last year. I see the pipeline to be a lot bigger than what it was the same time last year. I do see the green shoots coming out, and therefore 2025-26 (FY26) will be a better year than 2024-25.
Having said that, there is a little bit of revenue to be sold in the year baked into these guidance numbers that we always give and that is where we are.
Now in terms of margins, we had committed that the second half of the year (H2) will be better than the first half of the year (H1).
April-June 2024 quarter and July-September 2024 quarters are over. It will be regular investments, and you will continue to see margins improve. In the medium term, we are reiterating our aspiration to get to $2 billion and 17-18% EBIT levels.
For more details, watch the accompanying video
Catch all the latest updates from the stock market here
