India's L&T Technology retains full-year forecast after all units post Q3 growth

L&T Technology Services

16/01/2024 11:33

By Sai Ishwarbharath B
       Jan 16 (Reuters) - Indian tech services provider L&T
Technology Services  LTEH.NS  retained its revenue growth
forecast for the current financial year on Tuesday as all its
five business verticals posted year-on-year growth for the third
quarter. 
    The Mumbai-based firm expects revenue for the current fiscal
year ending March 31 to grow 17.5%-18.5% in constant currency.
    "All five segments grew positively for the second quarter in
a row giving us 1% sequential growth despite the seasonal
softness," CEO Amit Chadha said in a statement. 
    Two units - the industrial products segment and Europe
region - have scaled a $200 million run-rate on annualised
basis, he added.
    The board has also extended Chadha's term as CEO for three
additional years ending March 2027.
    This comes as Infosys  INFY.NS  and HCLTech  HCLT.NS 
tightened their revenue guidance for the year last week citing
no change in the demand environment for the year, marred by high
inflation and clients cutting down on discretionary spending. 
    However, better-than-feared numbers by the top four firms
have triggered a rally in IT stocks this week, helping the
country's benchmark indices hit fresh lifetime highs. 
    L&T Technology's consolidated net profit rose 3.36 billion
rupees ($40.43 million) from 2.97 billion rupees a year earlier,
marginally above analysts' estimate of 3.31 billion rupees.
    The subsidiary of infra giant Larsen and Toubro  LART.NS 
won six deals that are more than $10 million each in size, it
said in a filing. This included one deal each of sizes $40
million and $20 million.
    Revenue from operations rose 12% to 24.22 billion rupees, on
the back of double-digit growth in telecom and medical devices
verticals, below analysts' estimate of 24.45 billion rupees.
    Transportation, its largest vertical that contributes more
than a third of overall revenue, grew 8.3%.
    The company's shares ended 1.74% lower ahead of the results.

($1 = 83.0978 Indian rupees)

 (Reporting by Sai Ishwarbharath B; Editing by Sohini Goswami)
 ((saiishwarbharath.b@thomsonreuters.com;))