L&T Tech reports sequential growth of 4.5% in CC revenues in Q2, upgrades FY23 revenue guidance to 15.5-16.5%

• The company said that it has hit $1 billion in annualized revenue run rate.
• It bagged a multi-million dollar deal from BMW to provide high-end engineering services for its hybrid cars.
• L&T Tech declared an interim dividend of ₹15 per share, with the record date set to October 28.

IT services company L&T Tech today posted a 2.9% growth in net profit for the second quarter to ₹282 crore from ₹274 crore last quarter. Its revenue grew 4.5% sequentially in constant currency terms to ₹1,995 crore from ₹1,874 crore in the first quarter.

On a year-on-year basis, its net profits grew 22.6%, and its revenues grew 24%.

“We are proud to have achieved a $1 billion annualized revenue run-rate in Q2 on a constant currency basis. Our momentum stayed strong in the second quarter of the fiscal year with revenue growing sequentially by 4.5% in constant currency,” said Amit Chadha, the CEO and MD of L&T Tech.

The company upgraded its revenue guidance for FY23 from 13.5-15.5% to 15.5-16.5%, saying that despite the macro-economic uncertainties, the company sees customer investment continuing in its six big bet areas.

Recessionary concerns in Europe notwithstanding, Chadha said, “Deal bookings have been healthy especially in Europe where we closed a record high total contract value and have visibility of doubling our bookings this fiscal.”

L&T Tech said that it bagged a multi-million dollar deal from BMW Group to provide high-end engineering services for infotainment consoles in its hybrid cars.

Its net margins however remained under pressure, declining both sequentially and on a year-on-year basis. Moreover, its attrition rate worsened by 280 basis points sequentially to 23.2% during the quarter. Its net employee addition stood at 572.

Here’s L&T Tech’s Q2 in numbers:


Source: Company reports

The company declared an interim dividend of ₹15 per share, with the record date set to October 28.

Segment-wise, transportation continued to grow stronger – it contributes to over one-third of the company’s revenues. It also emerged as the best performer both QoQ and YoY.


Source: Company reports

Geography-wise, US and Europe continue to dominate with a share of nearly 80% in the company’s revenues. India’s share declined marginally during the quarter.


Source: Company reports

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