While announcing its quarterly results on Tuesday, L&T Technology Services (LTTS) claimed it had received a $45 million contract from a US-based automotive company during the third quarter.
The company stated that it intends to serve as its customers’ strategic engineering partner and provide services for its electric vehicle (EV) product portfolio. In addition, three deals with TCVs of $10 million or greater were signed. The company said in a statement that revenue from digital and other high-tech sectors accounted for 56% of total revenue during the quarter.
According to the terms of the five-year agreement, LTTS will expand into Eastern Europe and collaborate with its customer to deliver solutions leveraging its e-mobility technology expertise from LTTS’ ER&D center in Krakow, Poland.
L&T Technology Services CEO and Managing Director Amit Chadha stated that their success in this deal enables them to expand their ER&D centre in Krakow and work on that has already begun. They believe that they will have 300 people in Krakow within the next few years.
In the quarter ended December 31, LTTS’ revenue increased by 20% year on year to Rs 16,875 million ($225.1 million). The company’s net profit increased by 34% to Rs 2,488 million, while the EBIT margin increased by 340 basis points year on year to 18.6 %.
Chadha said that the company maintained its performance trajectory with 4.2 % sequential growth in constant currency, driven by solid demand across segments. He stated that LTTS is reiterating its guidance of a ‘strong’ 19-20 % increase in revenue USD terms for FY 22 and that the company is on track to meet that target. He also stated that LTTS’s six big bets are electric autonomous & connected vehicles (EACV), 5G, med-tech, AI and digital products, digital manufacturing, and sustainability.
As part of our six big bets, they have invested in Electric, Autonomous, and Connected Vehicles (EACV). Their engineers have developed several new scalable e-mobility solutions to accelerate global automotive players’ EV development journey. This historic transaction demonstrates that their strategic investment pays off and solidifies LTTS’ dominance in the EACV landscape.
Chadha stated that given the company’s confidence in its growth prospects, it had hired 1,900 trainees, in addition to the 1100 trainees hired in the previous two quarters. They took on 3,000 trainees in three-quarters of FY 22,” he said. LTTS had 20,118 employees as of the end of Q3FY22.
About L&T Technology Services Limited
L&T Technology Services Limited (LTTS) is a global leader in engineering and research and development (ER&D). LTTS lives and breathes engineering has filed 593 patents for 53 of the Global Top 100 ER&D spenders. Their innovations speak for themselves: the World’s First Autonomous Welding Robot, the Solar ‘Connectivity’ Drone, and the World’s Smartest Campus, to name a few.
For more information, visit https://www.ltts.com/