It only Shows Raw batspeed, which of course helps but not if the swing is long and wide. Off a tee that long swing can produce high batspeed.
still of course high speed means that you have good physical ability just like a big fastball shows physical ability but doesn't mean you can pitch. Still all things being equal or course higher velo is better, even if you can't hit that well recruiters might believe they can still teach you to hit or pitch if the raw power is there. But at some point of course you have to prove that your tools transfer to game play.