(Reuters) – Indian engineering and technology services firm L&T Technology Services on Wednesday reported second-quarter revenue that edged past estimates, boosted by large deals signed in the previous quarters, and maintained its full-year revenue forecast.
The company’s revenue rose 7.8% to 25.73 billion rupees ($306.34 million) for the quarter ended Sept. 30. Analysts had expected 25.67 billion rupees, according to data compiled by LSEG.
The Larsen and Toubro group firm reaffirmed its full-year 2025 revenue growth forecast of 8-10% .
Net profit rose 1.3% to 3.2 billion rupees in the quarter, lower than analysts’ estimate of 3.33 billion rupees.
Shares of the company closed 0.7% higher, ahead of the results.
KEY CONTEXT
Engineering, research, and design (ER&D) services, which include technology support to industries such as automotive and communications, contribute a sixth of the revenue to India’s $254 billion technology sector.
Companies such as L&T Technology Services and peer Tata Elxsi are likely to benefit from growth in the ER&D sector, which, according to the National Association of Software and Service Companies, is expected to quadruple to as much as $170 billion between 2023 and 2030.
L&T Technology has bagged large deals from auto parts maker Forvia and energy giant Shell in the last few quarters, aiding its revenue growth.
Last week, Tata Elxsi reported an increase in its second-quarter profit, with revenue in line with street expectations, fuelled by healthy demand in its transportation unit.
PEER COMPARISON
Valuation Estimates (next 12 Analysts’ sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth growth rating* analysts price yield
target** (%)
L&T Technology 37.79 24.78 10.07 8.69 Sell 27 1.15 0.98
Services
Tata Elxsi 49.01 34.99 12.09 10.39 Sell 12 1.05 1.00
Cyient 23.19 13.75 10.60 13.26 Buy 17 0.86 1.62
KPIT Technologies 58.92 35.94 21.52 30.54 Buy 14 1.04 0.26
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
($1 = 83.9920 Indian rupees)
(Reporting by Sai Ishwarbharath B; Editing by Abinaya Vijayaraghavan)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.