The IT engineering firm saw broad-based growth across all verticals and geographies, with revenue rising 4.5% sequentially to Rs 2,572.9 crore in Q2. Year-on-year, revenue was up by 7.8%.
However, operating margins fell to 15.1% in the just-concluded quarter, compared to 15.6% in Q1 FY25. Year-on-year, margins declined by 200 basis points (bps). “We had earlier indicated that we would be investing heavily in sales and technology in the first two quarters. As revenue continues to grow, margins will rebound,” said Amit Chadha, CEO and MD of LTTS.
Chadha added, “We are witnessing an uptick in AI-led deal conversations, and our portfolio of AI solutions and accelerators is helping us win deals across our focus segments.”
“With our pipeline comprising larger-sized deals involving consolidation and advanced technology-led transformation, we remain confident about achieving our medium-term goal of $2 billion in revenue with an EBIT margin of 17-18%,” he said.
LTTS’ headcount grew by 121, reaching 23,698 at the end of the September quarter. During the quarter, the firm secured two deals worth $20 million each and four deals worth $10 million in total contract value (TCV). The company maintained its FY25 guidance of 8-10% revenue growth in constant currency.
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The board declared an interim dividend of Rs 17 per equity share. LTTS shares closed at Rs 5,336, up 0.33% on the BSE on Wednesday.
