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

By Sai Ishwarbharath B

(Reuters) – Indian tech services provider L&T Technology Services 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 and HCLTech 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 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)