Updated January 16th, 2024 at 17:52 IST
L&T Technology maintains full-year revenue growth projections
The positive performance of the top four IT firms contributes to a surge in IT stocks, propelling the country's benchmark indices to record highs.
- 2 min read
L&T Technology Services maintains its full-year revenue growth projection for the current fiscal year ending March 31, as all five business verticals exhibit year-on-year growth in the third quarter. The Mumbai-based tech services provider anticipates a 17.5 per cent - 18.5 per cent growth in constant currency. Despite the seasonal softness, CEO Amit Chadha notes positive growth across all segments for the second consecutive quarter, resulting in a 1 per cent sequential growth. The industrial products segment and Europe region achieved a $200 million annualised run rate. Chadha's tenure as CEO has been extended until March 2027.
In contrast to Infosys and HCLTech, which revised their revenue guidance downward due to a challenging economic environment marked by high inflation and reduced discretionary spending by clients, L&T Technology Services reports better-than-expected numbers. The positive performance of the top four IT firms contributes to a surge in IT stocks, propelling the country's benchmark indices to record highs.
L&T Technology's consolidated net profit reaches 3.36 billion rupees ($40.43 million), slightly exceeding analysts' estimates. The subsidiary of infrastructure giant Larsen and Toubro secures six deals exceeding $10 million each in size, including a $40 million and a $20 million deal. Revenue from operations increased by 12 per cent to 24.22 billion rupees, driven by double-digit growth in the telecom and medical devices verticals. However, it falls short of analysts' expectations of 24.45 billion rupees. The transportation vertical, contributing over a third of overall revenue, experiences an 8.3 per cent growth.
Despite the positive financial results, L&T Technology's shares conclude 1.74 per cent lower before the announcement of the results.
(With Reuters inputs)
Published January 16th, 2024 at 17:52 IST