L&T Technology Services (LTTS) Q4 FY25 & FY25 Results Analysis

L&T Technology Services (LTTS) Q4 FY25 & FY25 Results Analysis

1. Order Book Momentum

LTTS, reported its highest-ever large-deal TCV bookings in Q4 FY25, comprising one deal > USD 80 million, one > USD 50 million, one > USD 30 million, one > USD 20 million and three > USD 10 million deals, underscoring strong order-book accretion . This momentum extended through FY25 amid robust large-deal pipeline strength .

2. Constant Currency Growth (CCG)

• Q4 FY25: USD revenue of $345.1 million; +10.5% QoQ and +14.2% YoY in constant currency .
  
  

• FY25: USD revenue of $1,259 million; +8.9% YoY in constant currency .
  
  

3. Consolidated Sales Growth

• Q4 FY25: ₹29,824 million; +12.4% QoQ and +17.5% YoY .
  
  

• FY25: ₹106,701 million; +10.6% YoY .
  
  

4. Segmental Revenue Growth

Q4 FY25 vs Q4 FY24

• Mobility: ₹8,727 m vs ₹8,113 m → +7.5% YoY.
  
  

• Sustainability: ₹8,583 m vs ₹7,605 m → +12.9% YoY.
  
  

• Tech: ₹12,514 m vs ₹9,657 m → +29.5% YoY.
  
  

FY25 vs FY24

• Mobility: ₹35,087 m vs ₹31,613 m → +11.0% YoY .
  
  

• Sustainability: ₹32,167 m vs ₹29,895 m → +7.6% YoY .
  
  

• Tech: ₹39,447 m vs ₹34,965 m → +10.1% YoY .
  
  

5. Geographical Revenue Growth

Q4 FY25 QoQ/YoY

• North America: +11.4% QoQ; +9.3% YoY
  
  

• Europe: +0.6% QoQ; +18.5% YoY
  
  

• India: +18.8% QoQ; +16.6% YoY
  
  

• Rest of World: +5.5% QoQ; +18.6% YoY .
  
  

FY25 YoY

• North America: +2.6% YoY
  
  

• Europe: +20.9% YoY
  
  

• India: +12.7% YoY
  
  

• Rest of World: +8.7% YoY .
  
  

6. Profit Margins

Q4 FY25 vs Q4 FY24

• Gross Margin: 27.8% vs 28.9%
  
  

• EBITDA Margin: 15.9% vs 19.8%
  
  

• EBIT Margin: 13.2% vs 16.9%
  
  

• Net Margin: 10.4% vs 13.4% .
  
  

FY25 vs FY24

• Gross Margin: 28.8% vs 29.0%
  
  

• EBIT Margin: 14.9% vs 17.1%
  
  

• Net Margin: 11.9% vs 13.5% .
  
  

7. Consolidated Profit Growth

• Q4 FY25: Net profit ₹3,111 m vs ₹3,409 m in Q4 FY24 → –8.8% YoY .
  
  

• FY25: Net profit ₹12,667 m vs ₹13,037 m in FY24 → –2.8% YoY .
  
  

8. Key Industry KPIs

• Patent Filings: 1,502 total (incl. 190 in AI/Gen AI) .
  
  

• Active Clients: 421 vs 381 in Q4 FY24 .
  
  

• Deal Wins: Awarded multi-million-dollar projects including USD 80 M+, USD 50 M+, USD 30 M+, USD 20 M+ and three USD 10 M+ deals .
  
  

9. Solvency, Liquidity, Profitability & Cash-Flow Ratios

• Current Ratio (FY25): ~2.16× (Current Assets ₹64,641 m / Current Liabilities ₹29,900 m) .
  
  

• Debt-to-Equity Ratio: 0.09× (Non-current Liabilities ₹5,560 m / Equity ₹60,800 m) .
  
  

• Return on Equity (ROE): 22% .
  
  

• Free Cash Flow to Net Income: 109% (₹13,793 m / ₹12,667 m) .
  
  

10. Valuations (CMP ₹4,480)

• P/E (FY25): 4,480 / 119.70 ≈ 37.4×.
  
  

• P/BV: 4,480 / 119.44 ≈ 37.5×.
  
  

• Dividend Yield: 38 / 4,480 ≈ 0.85% (final dividend) .
  
  

11. Near-Term & Long-Term Outlook

• Near Term (FY26): Expect double-digit constant-currency revenue growth, driven by AI & Automation solutions and strong large-deal pipeline .
  
  

• Medium Term: Reaffirmed USD 2 billion revenue target .
  
  

12. Disclosure

Analysis based on LTTS’s Consolidated Results announced April 24, 2025. Contains forward-looking statements subject to risks & uncertainties; LTTS undertakes no obligation to update such statements .

This analysis is provided for educational purposes and should not be construed as investment advice.