Q2 2025 L&T Technology Services Ltd Earnings Call Transcript
Key Points
- L&T Technology Services Ltd (BOM:540115) reported a strong quarter with a sequential revenue growth of 3.9%, driven by broad-based growth across regions and segments.
- The company secured significant deals, including two USD20 million plus deals and four USD10 million plus deals, indicating robust customer engagement and pipeline.
- The sustainability segment led the growth with a 6.5% increase, followed by mobility at 5%, showcasing the company's strategic focus on these areas.
- The company has made focused investments in mobility, sustainability, and tech, which are beginning to show results in terms of pipeline and deal wins.
- L&T Technology Services Ltd (BOM:540115) reaffirmed its FY25 guidance of 8% to 10% revenue growth in constant currency and aims for 16% EBIT margin levels, demonstrating confidence in its growth trajectory.
- The EBIT margin for the quarter was slightly lower at 15.1% compared to Q1, impacted by investments in sales and technology.
- The company anticipates a slightly soft Q3 for the mobility segment due to seasonality and furloughs, which could affect short-term growth.
- Despite a strong pipeline, some large deals expected to close in Q2 were delayed due to elections and macroeconomic factors, impacting immediate revenue realization.
- The tech segment experienced flat growth in Q2, with some projects concluding and performance in comms and media being soft.
- The company faces challenges in maintaining margins amidst wage hikes planned for Q3, which could impact profitability in the short term.
Ladies and gentlemen, good day. And welcome to the Q2 FY25 conference call of L&T Technology Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Pinku Papan, Head of Investor Relations. Thank you and over to you Mr. Papan.
Thank you, Davin. Hello everyone and welcome to the earnings call of L&T Technology Services for the second quarter of FY25. I am Pinku, Heading Investor Relations.
Our financial results, investor release and press release have been filed on the stock exchanges and are also available on our website www.ltts.com. I hope you've had a chance to go through them.
This call is for 60 minutes. We will try to wrap up the
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