Shares of Indian engineering services provider L&T Technology Services Limited climbed more than 10% intraday on Oct. 21 after quarterly results showed higher revenue and a wider operating margin.
BOB Capitals’ market tracker showed the stock at ₹3,998.20 on the BSE at 1:17 a.m. ET (05:17 UTC), a gain of 10.76%. It was the first trading session since the company released its fiscal second-quarter results Oct. 19. The BSE and National Stock Exchange were closed Oct. 20 for Dussehra.
Revenue for the quarter ended Sept. 30 reached ₹30.404 billion, up 3.4% from the previous quarter and 12.1% from a restated year-earlier figure. Earnings before interest and tax totaled ₹4.966 billion. The operating margin widened 60 basis points from the previous quarter to 16.3%.
The sale of the company’s Smart World and Communication business added a ₹1.650 billion after-tax gain to reported profit. Net income attributable to shareholders reached ₹5.482 billion, up 66.8% from a year earlier. For continuing operations, net income attributable to shareholders was ₹3.796 billion, a 19.7% increase. The company completed the sale Sept. 1 and restated earlier results to reflect the divestment.
Chief Executive Officer and Managing Director Amit Chadha linked revenue growth to work beginning under contracts secured in previous quarters. L&T Technology Services reported large deals worth more than $200 million during the quarter. AI-related contracts accounted for more than half of that total contract value, which is separate from quarterly revenue.
The intraday share price stood above two reported brokerage targets. NDTV Profit reported that JPMorgan raised its target to ₹3,700 from ₹3,300 while retaining a Neutral rating. The Economic Times reported that Nomura raised its target to ₹3,500 from ₹3,290 and retained a Neutral rating. Both reported targets were below the quoted price.
The company declared an interim dividend of ₹20 per share, with an Oct. 27 record date.
