India's L&T Tech sees 20% FY24 revenue growth, posts profit beat in Q4

BENGALURU (Reuters) - Indian engineering firm L&T Technology Services Ltd said on Wednesday it expects revenue to grow over 20% for the current fiscal year after reporting a bigger-than-expected fourth-quarter profit on a strong deal pipeline.

"For FY24, our guidance is for a USD constant currency revenue growth of 20% plus," Chief Executive Officer Amit Chadha said in a statement.

The company's consolidated net profit rose to 3.10 billion rupees ($37.93 million) for the three months ended March 31, beating analyst expectations of 3.04 billion rupees, according to Refinitiv IBES data.

L&T Tech's EBIT margin grew to 18.7% in the quarter from 18.6%, a year ago.

The company, which provides engineering services in transportation and industrial products segments, said it won three deals with a total contract value of more than $10 million for the quarter.

In February, it bagged a partnership with French tech-firm Thales for enabling private 5G networks in urban railways. A month earlier, it also announced it was selected as a strategic partner to Airbus under a multi-year contract.

The strong results come at a time when L&T Tech's major markets - the United States and Europe - are staring at a recession, with clients contemplating spending cuts and project ramp-downs to save cash.

The Vadodara-headquartered company gets over three-fourths of its revenue from these markets.

L&T Tech's consolidated revenue from operations for the quarter rose 19.4% to 20.96 billion rupees. Transportation, the largest segment contributing 34.5% to total revenue, posted a 23.9% jump in revenue for the period.

($1 = 81.7200 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; editing by Eileen Soreng)