L&T Technology Services (LTTS) Q3FY25 performance was robust, with revenue growth of 3.1% in constant currency. This growth was primarily led by the Tech segment, which surged 11.1%, and the Sustainability segment, which grew 4%.
The company’s “Go Deeper to Scale” strategy has started delivering results, reflected in record-high large deal bookings. LTTS secured 8 major deals, including one $50 million deal, 2 deals exceeding $35 million, 2 deals over $25 million, and three deals above $10 million, as per the transcript of Q3 FY25 Earnings Conference Call organised by the company on January 15, 2025
The Tech segment’s growth was fuelled by rising demand in network performance management, AI-driven automation, and software product engineering. The Sustainability segment saw strong momentum in process and industrial verticals, with notable deals in Oil & Gas, FMCG, and electric controls for industrial automation.
In contrast, the Mobility segment faced headwinds, declining by 5.2% due to spending pauses by certain OEMs and weak demand in agriculture and construction machinery. However, the company remains confident in its AI-based solutions for operational efficiency in airlines and railways, and recent vendor consolidation wins in the commercial vehicle segment are expected to drive a rebound.
On the financial front, EBIT margins improved by 110 basis points to 16.2% (excluding M&A-related costs), reflecting operational efficiency improvements and disciplined cost management. LTTS also completed the acquisition of Intelliswift in January 2025, enhancing its AI, digital, and software engineering capabilities and expanding its addressable market in Retail, Fintech, and Healthcare. The company’s free cash flows reached a record ₹638 crore, supported by improved DSO (Days Sales Outstanding) at 112 days, down from 116 days in Q2.
The pipeline remains robust across segments, particularly in AI-led automation, MedTech solutions, and smart city infrastructure. LTTS reaffirmed its FY25 revenue growth guidance of near 10% (8% organic), with a long-term ambition of reaching $2 billion in revenue and 17-18% EBIT margins.
L&T Technology Services Limited (LTTS), has introduced TrackEi, an AI-powered railway track inspection solution. Designed to improve railway safety, this innovation integrates NVIDIA Jetson for real-time defect detection, predictive maintenance, and enhanced operational efficiency.
The share price of LTTS was trading down by 1.5% as of 9:26 AM on March 19, 2025.
Traditional railway track inspections involve manual checks or slow-moving trolley-based assessments. These methods can be time-consuming and, in some cases, ineffective at detecting critical defects in time to prevent accidents.
TrackE addresses this challenge by enabling high-speed, automated inspections at over 60 miles per hour, using high-resolution cameras and laser profiling to identify defects such as broken rails, cracks, misalignments, and other structural issues.
As railway infrastructure continues to modernise, AI-powered solutions like TrackEi play a vital role in ensuring safety, efficiency, and sustainability. LTTS’ innovation marks a significant step towards the future of intelligent railway maintenance, offering real-time insights and predictive capabilities to transform rail transport worldwide.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 19, 2025, 2:49 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
