India's L&T Technology misses revenue estimates on lower mobility services sales

L&T Technology Services

24/04/2025 13:30

April 24 (Reuters) - Indian engineering and technology firm L&T Technology Services LTEH.NS reported fourth-quarter revenue below analysts' estimates on Thursday on slowing sales in its mobility segment, which includes the automotive, aerospace, and rail industries.

The Larsen & Toubro LART.NS group firm said its consolidated revenue from operations grew 17.5% on-year to 29.82 billion rupees (about $350 million) in the quarter ended March 31.

Analysts had expected a revenue of 30.56 billion rupees, as per data compiled by LSEG.

Net profit fell about 9% to 3.11 billion rupees, lagging behind analysts' estimate of 3.49 billion rupees.

"We re-affirm our medium-term outlook of $2 billion revenue," CEO Amit Chadha said in a statement.

KEY CONTEXT

The engineering, research and design (ER&D) services sector, which includes technology support to industries such as transportation and communications has been grappling with sluggish demand in its automotive vertical due to concerns over how U.S. tariffs would shape up, analysts said.

The mobility segment's contribution to the firm's revenue has slipped to 29% from 32% a year earlier. The segment logged a 3.2% rise in the quarter, lower than 4.7% growth in the previous quarter and 11% jump a year ago.

Peer Tata Elxsi TTEX.NS, earlier this month, flagged project halts from top auto customers due to tariff issues.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
L&T Technology Services
LTEH.NS
30.73
18.54
18.36
16.85
Hold
27
0.90
1.14
Tata Elxsi
TTEX.NS
42.46
31.59
6.16
2.01
Sell
12
1.20
1.28
KPIT Technologies
KPIE.NS
36.28
21.92
16.07
16.21
Buy
14
0.81
0.61
Tata Technologies
TATE.NS
37.86
27.07
7.37
15.98
Sell
10
1.04
1.19

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

   JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 85.2740 Indian rupees

JANUARY-MARCH STOCK PERFORMANCE https://tmsnrt.rs/3S3WDbH

 (Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))