L&T Technology Services (LTTS), India's leading pure-play engineering services company, has reported a robust performance for the first quarter, with a 16% year-on-year growth in revenue. The company continues to demonstrate strong momentum in large deals and strategic initiatives across its key segments.

Financial Highlights

• Revenue reached ₹28,660.00 million (approximately $335.30 million), marking a 16.4% increase year-on-year
• Net profit stood at ₹3,157.00 million, up 0.7% year-on-year
• EBIT margin at 13.3%

Large Deal Momentum

LTTS maintained its streak of securing over $200 million in large deals Total Contract Value (TCV) for the third consecutive quarter. The Q1 performance included:

• One deal worth $50 million
• Three deals in the $20-30 million range
• Six deals exceeding $10 million each

Segment Performance

Sustainability

• Grew 4% sequentially and 16% annually
• Crossed the $100 million milestone

Mobility

• Faced some challenges due to global macroeconomic factors

Tech

• Experienced Q1 seasonality in a specific subsector

Strategic Initiatives

AI and Automation Focus

LTTS is seeing increased client engagements and deal wins in AI-related projects. The company has filed 206 patents in the AI domain and is launching PLxAI, a proprietary AI framework to accelerate product development lifecycles.

New Design Center

LTTS inaugurated a state-of-the-art Engineering Design Center in Plano, Texas, focusing on AI, digital manufacturing, and cybersecurity. This facility is expected to create over 350 high-skilled jobs.

Sustainability Push

The company signed strategic agreements in the Sustainability segment, including a $50 million plus deal with a Global Energy Major for Enterprise Data and Digital Services.

Leadership Changes

LTTS announced the appointment of Mr. T. Shivram as the new Chief Human Resource Officer, effective August 1, replacing Mr. M. T. Lakshmanan.

Future Outlook

Amit Chadha, CEO and Managing Director of LTTS, expressed confidence in the company's growth trajectory, stating, "Backed by an increased order book and a focus on resilience and profitable growth, we expect to clock double-digit growth and maintain our medium-term outlook of USD 2 billion revenue."

The company's multi-segment diversification strategy, coupled with its 'Go Deeper to Scale' approach and investments in advanced technologies, is strengthening client relationships and driving robust large deals TCV.

As LTTS continues to navigate the dynamic global market, its focus on AI, sustainability, and strategic expansions positions it well for future growth in the engineering services sector.

L&T Technology Services (LTTS), India's leading pure-play engineering services company, has reported a strong financial performance for the first quarter, with ambitious growth targets on the horizon.

Q1 Financial Highlights

• Revenue reached ₹2,866.00 crore, marking a 16.4% year-on-year growth
• USD Revenue stood at $335.30 million, up 13.6% year-on-year
• Net profit increased to ₹316.00 crore, a 0.7% year-on-year growth
• EBIT margin maintained at 13.3%

Strong Deal Momentum

LTTS continued its large deal momentum for the third consecutive quarter, securing deals worth over $200 million in Total Contract Value (TCV). The quarter saw several significant wins, including:

• One deal worth $50 million
• Three deals in the $20-30 million range
• Six deals valued at over $10 million each

Segment Performance

The Sustainability segment showed particularly strong performance, growing 4.1% sequentially and 16.4% annually to cross the $100 million milestone. It is now a $400 million plus annual business on a run-rate basis.

Strategic Initiatives and Future Outlook

Amit Chadha, CEO and Managing Director of LTTS, highlighted several key initiatives and future plans:

1. AI Focus: LTTS is launching PLxAI, a proprietary AI framework that accelerates product development lifecycle for global clients.

2. New Design Center: A state-of-the-art Engineering Design Center was inaugurated in Plano, Texas, focusing on AI, digital manufacturing, and cybersecurity.

3. Growth Projections: Despite some challenges in specific tech subsectors and global macros in Mobility, LTTS expects to achieve double-digit growth.

4. Medium-Term Goal: The company maintains its medium-term outlook of reaching $2 billion in revenue.

Management Commentary

"We commenced the fiscal year with strong momentum in large deals, continuing the trend from the previous quarters with both Europe and U.S. geographies growing on a sequential basis," said Amit Chadha. "Our multi-segment diversification strategy has proven resilient, with the Sustainability segment achieving double-digit annual growth."

Chadha also emphasized the company's focus on AI and automation, noting that LTTS engineers have deployed multiple AI programs for clients and filed 206 patents in this domain.

Conclusion

Despite some sectoral challenges, L&T Technology Services has demonstrated robust growth and maintains an optimistic outlook. With its strategic focus on AI, sustainability, and large deals, the company appears well-positioned to achieve its ambitious growth targets in the coming years.