BENGALURU (Reuters) – Indian engineering research and development services provider L&T Technology Services reported a 7% rise in its fourth-quarter revenue on Thursday, in line with street expectations, aided by strong deal wins.
WHY IT’S IMPORTANT
Global carmakers and other transport manufacturers are increasingly pivoting to electric and self-driving models, boosting engineering R&D companies such as L&T Technology Services, which work in areas like software-defined vehicles and cybersecurity.
However, the country’s broader $254 billion information technology sector has been struggling in recent quarters as clients cut spending amid inflationary pressures.
Earlier this month, peers Tata Consultancy Services and Infosys reported smaller-than-expected quarterly revenues.
Rival Tata Elxsi had reported a smaller-than-expected quarterly profit on Tuesday due to tepid demand in its media and communications vertical.
BY THE NUMBERS
The company’s consolidated revenue from operations rose to 25.38 billion rupees ($304.63 million) for the three months ended March 31, against analysts’ expectations of 25.39 billion rupees.
Its consolidated net profit rose marginally to 3.41 billion rupees.
The company also forecast revenue growth between 8%-10% for the fiscal year ending March 2025.
For more details on L&T Technology’s results, click here.
GRAPHIC
— All data from LSEG
KEY QUOTES
“We are now embarking on the next stage of growth with a ‘Go Deeper to Scale’ strategy under which we will streamline our organization into three segments – Mobility, Sustainability and HiTech,” CEO Amit Chadha said.
($1 = 83.3143 Indian rupees)
(This story has been corrected to say revenue met and not beat analyst expectations in the headline)
(Reporting by Aleef Jahan in Bengaluru; Editing by Janane Venkatraman)
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