L&T Technology Services Targets Growth Amid Profit Margin Squeeze

L&T Technology Services reported a slight rise in net profit for the September quarter, driven by strong revenue growth. However, profit margins narrowed due to increased spending on sales and technology. The company aims to boost revenues in FY25 and focus on growth in the Middle East and Europe.

L&T Technology Services (LTTS), a prominent player in engineering services, announced a 1.3% increase in net profit for the September quarter, reaching Rs 319.6 crore. This comes even as the firm's profit margins narrowed due to heightened expenditure on sales and technology.

Revenues saw a healthy 7.8% growth, totaling Rs 2,572.9 crore for the quarter, driven largely by a strong demand from Europe's automobile sector and sustainability initiatives. The company's CEO, Amit Chadha, asserted that revenue growth is expected to rise between 8-10% in FY25, with aspirations to achieve a USD 2 billion yearly revenue target in the medium-term.

Chadha emphasized that the narrowing operating profit margin, now at 15.1%, will expand to 16% by the fiscal year's end as the investments begin to pay off. The company is also concentrating on securing more deals in the Middle East and Europe while planning to hire 2,000 freshers in FY25.

(With inputs from agencies.)