L&T Services (LTTS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong performance with 3.1% constant currency revenue growth, led by Tech (11.1%) and Sustainability (4%) segments, and highest-ever large deal bookings including a $50M contract.

• Intelliswift acquisition completed for up to USD 110 million, enhancing AI, digital, and software engineering capabilities, and expanding into Retail, Fintech, and Healthcare.

• NVIDIA AI Experience Zone inaugurated in Bangalore, with 174 AI/GenAI patents filed and multiple industry awards received.

• Segment reorganization from five to three (Mobility, Sustainability, Tech) effective April 2024 to streamline structure and reporting.

• Board approved unaudited consolidated and standalone financial results for Q3 and nine months ended December 31, 2024.

Financial highlights

• Q3 FY25 consolidated revenue: ₹26,530 million, up 3.1% QoQ and 9.5% YoY; USD revenue at $311.9 million, up 1.7% QoQ and 7.3% YoY.

• Net income: ₹3,224 million (12.2% of revenue), up 0.9% QoQ; adjusted net income: ₹3,280 million.

• EBIT margin at 16.2% (excluding one-time M&A expense); EBITDA for Q3 FY25 was ₹4,947 million, up 6.2% QoQ.

• Free cash flow at record ₹638 crores for Q3; Free Cash Flow to Net Income at 101% YTD FY25; cash and investments at ₹3,290 crores.

• Basic EPS for Q3 FY25 at ₹30.47; diluted EPS at ₹30.40.

Outlook and guidance

• FY25 revenue guidance: near 10% growth including Intelliswift, near 8% organic.

• EBIT margin aspiration for FY25: near 16% organically; consolidated margin near 15% in Q4 due to Intelliswift, improving to mid-16% by FY27-FY28.

• Medium-term outlook targets USD 2 billion revenue with EBIT margin of 17-18%.

• All segments expected to grow in Q4 and into FY26, with strong deal pipeline and continued investments in technology.

• Segment reorganization to streamline structure and reporting.