L&T Technology Services (LTTS), in Q3FY25, reported a revenue growth of ₹2,653 crore, up 3.1 per cent QoQ and eight large deals. Amit Chadha, the company’s CEO & Managing Director, talks to businessline about the recent Intelliswift acquisition, the potential for H2FY25 to surpass H1, and AI/Gen AI-related green shoots. 

In Q3, you saw a sequential revenue growth of 3.1 per cent and a y-o-y growth of 9.5 per cent. What would you attribute this growth to? 

This is what we were expecting. The annualised run rate of the company now is about $1.3 billion. From a deal volume standpoint, the highest net new deals are in large deals. In Q3, we had the highest-ever deal booking TCV aided by eight large deals - one $50 million, two $35 million, two $25 million, and three $10 million deals. We are fairly pleased with the results, and the pipelines have been strong. From an EBIT standpoint, we improved to 16.2 per cent from 15.1 per cent last quarter. EBIT-wise, we said last quarter that H2 would be better. After an increment of about 100 basis points impact, we could deliver 16.2 per cent operationally.  

We integrated Intelliswift on Jan 3. For the year, including the acquired company, you will see about a 10 per cent growth in constant currency. That puts us in the higher end of our guidance. Next quarter we expect growth to continue. Intelliswift allows us to not just immediately override three $20 million-plus accounts in hyperscalers but also allows us to work in the service-led sectors of FinTech, retail and healthcare, which we were not in earlier. Therefore, if I look at FY26 and FY27, you will start to see growth improve because we’re getting into a new sector. In addition, in FY26, you will see us adding about 2,000 freshers. In the current year, we’ll add about 1,400. 

While many IT services players are opting for smaller deals, LTTS has seen several large deals during the quarter. What green shoots do you see? 

We have developed technology assets in AI, Gen AI, and other usable assets, helping us differentiate our technology offering and stack to our customers. We will invest in agentic AI next. Two of our large deals are because of our AI and Gen AI solutions. 

We believe client intimacy is important. We should be able to report our first $50 million account next year as well. So we continue to grow our account pyramid continuously, which is helping us as well. The pipeline is better than it was at the same time last year and last quarter. I believe FY26 will be a better year than FY25. 

Industrial automation and software-defined is picking up. Plant engineering work is off the charts because supply chain, and new plants, among others, are going on. With AI and Gen AI, more activity is happening. I expect these things to help us with growth. 

Seasonally, Q3 is a weak quarter because of furloughs and wage hikes, but you reported revenue growth. Will H2 be better for you than H1? 

H2 will be better than H1, with growth continuing into Q4. Two quarters ago, I had promised that every quarter there would be growth in margins and revenue. I am reconfirming this will happen. The annual guidance we gave was 8-10%. With Intelliswift coming in quarter four, we will be at the upper end of our guidance, which is near 10 per cent. There will also be further growth in FY26. 

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Published on January 21, 2025