Conference Call with L&T; Technology Services Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
IT Consulting & Software company L&T; Technology Services announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue of Rs 29,824 million for the quarter; growth of 12.4% QoQ and 17.5% YoY. Revenue of USD 345.1 million for the quarter; a growth of 10.7% QoQ and 13.1% YoY; in constant currency, a growth of 10.5% QoQ and 14.2% YoY. EBIT of Rs 3,939 million for the quarter; EBIT margin at 13.2%. Net Income of Rs 3,111 million for the quarter; Net margin at 10.4%. FY25 Financial Highlights: Revenue of Rs 106,701 million for the year; a growth of 10.6%. Revenue of USD1,259 million for the year; growth of 8.2%; in constant currency, a growth of 8.9%. EBIT of Rs 15,872 million for the year; EBIT margin at 14.9%. Net Income of Rs 12,667 million for the year; Net margin at 11.9%. Amit Chadha, CEO & Managing Director L&T; Technology Services, said: We continued our industry leading QoQ growth momentum with a third straight quarter of sequential growth of 10.7% and delivered 8.9% revenue growth in cc in FY25 despite a challenging environment. The growth was driven by superior client engagements and new-gen service offerings for our clients in the 3 segments as well as a record deals momentum that started in H2FY25. In Q4, we closed our highest TCV large deal bookings, including one USD 80+ million, one USD 50+ million, along with a USD 30+ million, USD 20+ million, and three USD 10+ million deals. The large deal pipeline has been robust on the back of value enhancement across the clients’ product lifecycle and digital transformation journey. Our balanced 3 segment approach is allowing us to grow in a de-risked manner with half of our large deals in this quarter coming in our most profitable segment of Sustainability. During the quarter, we completed the acquisition of Intelliswift allowing us to address new markets in Service-led sectors. We also achieved three milestones, crossing INR 10,000 crore in annual revenue, surpassing 1,500 patent filings and being officially recognized as a Great Place to Work™ in the U.S. for the second year in a row, and in Japan for the first time ever. The global macro-economic situation continues to evolve, indicating a degree of caution in tight market conditions. In this context, we continue to support our clients partnering with them to navigate a tough environment. We are focusing on operating levers to maintain our performance. The EBIT margin was 14.9% for the year while free cash flow improved to Rs 1,379 crore i.e. 109% of net income. We are also happy to announce a final dividend of Rs 38 per share, representing a dividend pay-out ratio of 46% for the year. LTTS is now positioned for its next phase of growth with prioritised investments in the three segments towards sales, solutions and labs. Our engineers continue to deliver innovative solutions in Digital Manufacturing and SDx as the technology landscape shifts sharply towards AI and Automation. We expect FY26 to be a better year than FY25, with a double-digit revenue growth in constant currency. We reaffirm our medium-term outlook of USD 2 billion revenue. I thank our customers for their belief in us, our employees for their commitment and dedication, and our stakeholders for the constant encouragement. Result PDF