stock of L&T Group surged by 5% following the successful acquisition of a ₹762 crore digital transformation contract
L&T Group : L&T Technology Services Limited is a prominent global provider of engineering research and development services, specializing in digital engineering, consultancy, and product development solutions. The company recently experienced a 4.54 percent increase in its stock price following the announcement of a significant digital engineering transformation deal valued at approximately Rs. 762 crore ($88 million).
Stock Price Movement
During Wednesday’s trading session, L&T Technology Services Limited’s shares surged to an intraday high of 4.54 percent from the previous closing price of Rs. 5,122.40. The stock opened at Rs. 5,125.10 and is currently trading at Rs. 5,279.95, reaching a high of Rs. 5,355 and a low of Rs. 5,125.10. The company’s market capitalization now stands at around Rs. 55,902.87 crore.
Recent Development
L&T Technology Services (LTTS) successfully secured a multiyear deal worth $80 million (approximately Rs. 761.9 crore) with a US-based industrial products manufacturer. This partnership aims to accelerate the client’s digital transformation through the implementation of cutting-edge technologies such as connected products and digital threads.
LTTS will establish a Center of Excellence (CoE) in India, serving as a global innovation hub to support the client’s digital transformation and product lifecycle management. The project’s objective is to enhance the client’s global footprint by leveraging advanced digital technologies. LTTS plans to leverage its engineering expertise to drive innovation and help the client maintain a competitive edge in the market.
Future Prospects
L&T Technology Services Limited continues to maintain a robust deal pipeline, with several large deals ranging from $25-100 million. The company has set a revenue growth guidance of 10 percent for FY25, with organic growth expected to be around 8 percent and an EBIT margin target of 16 percent.
Order Book
In the third quarter, L&T Technology Services achieved its highest-ever large deal bookings, securing eight significant deals across various segments. Notable deals include a $50 million deal, two over $35 million, two over $25 million, and three over $10 million.
Furthermore, the company added strong deals to its pipeline, with a focus on product development and business transformation. Key deals include a $50 million deal for product integration services, a media company deal for next-gen products, and a healthcare OEM engagement for supply chain optimization.
Strategic Focus
L&T Technology Services aims to capture market share and accelerate growth by investing in technology and leadership. The company is focused on building three $1 billion segments, targeting $2 billion in revenue and 17-18 percent EBIT margins in the medium term.
Recent Quarter Results
In the recent quarter, L&T Technology Services Limited saw an increase in revenue from Rs. 2,148 crore in Q2 FY24 to Rs. 2,412 crore in Q2 FY25, representing a growth of 12.29 percent. However, the net profit dropped by 6.23 percent, from Rs. 321 crore in Q2 FY24 to Rs. 301 crore in Q2 FY25.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.