L&T Technology Services shares fall after company cuts revenue guidance for FY24

Shares of L&T Technology Services fell as much as 4.52 per cent on Wednesday after the company lowered its revenue growth guidance for the current financial year citing longer deal decision cycles and macroeconomic challenges.

The arm of the country’s largest infra developer Larsen and Toubro now expects revenue in dollars for this fiscal year ending March to grow 17.5 per cent-18.5 per cent in constant currency, as opposed to the previous estimate of a 20 per cent jump.

"While longer term trends for ER&D remain strong, in the short term we are seeing longer decision cycles and incremental headwinds from the macro-economic stress in various geographies," CEO Amit Chadha said in a statement.

L&T Technology, however, reported consolidated net profit for the second quarter at Rs 315 crore, up from Rs 300 crore a year ago.

During the quarter, the company won seven deals worth more than $10 million each across all industry segments, it said in a filing.

Revenue from operations climbed 4.6 per cent to Rs 2,387 crore in the quarter, led by 15 per cent rise in revenue in its mainstay transportation segment.

The company restated year-ago figures to incorporate results of Smart World and Communication, a business it purchased from its parent earlier this year.

As of 11:11 am, L&T Technology Services shares traded 4.43 per cent lower at Rs 4,411.05, underperforming the Sensex which was down 0.4 per cent.

(With Reuters inputs)