"Rock solid, and poised to outperform" was the verdict of Axis Direct analysts in August, after attending a meet with L&T Technology Services (LTTS) management. The strong focus on digitization and IP creation appeared to be giving the company clear differentiation, and this was coinciding with a demand for digitalization from traditional industry players, including the auto sector. 

The Q2 results delivered for LTTS and has solidified this verdict for the time being. The company reported a net profit growth of 25% QoQ to Rs. 123 crore for its September quarter, via new wins in sectors such as auto and telecom. The company is also successfully winning new business from its large clients, with contribution of revenue from this group rising to 65.7% from 63.8% in the previous quarter.

LTTS has been focusing on strong IP areas such as autonomous technology and smart manufacturing, which management said is helping drive deal closure. This focus is also expected to improve margins in the coming quarter, according to the firm. LTTS' share price hit a new year high today on the upbeat results.