L&T Technology Services Limited (LTTS), a leading global pure-play engineering services company, has reported a strong performance for the first quarter, with notable growth in its Sustainability segment and continued momentum in large deal wins.

Key Financial Highlights

• Revenue stood at ₹2,866.00 crores, marking a 16.4% year-over-year (YoY) growth.
• In US dollar terms, revenue reached $335.00 million, representing a 13.6% YoY growth.
• EBIT margin remained stable at 13.3% for the quarter.
• Net income was ₹316.00 crores, up 1.5% quarter-on-quarter (QoQ), accounting for 11% of revenue.

Segment Performance

The company's performance across its three main segments showed mixed results:

Sustainability

• Crossed the $100.00 million quarterly milestone for the first time.
• Grew 16.4% YoY and 4.1% QoQ.
• Now represents a $400.00+ million annualized business.

Tech

• Grew 29.4% YoY, including benefits from the Intelliswift acquisition.
• Experienced a sequential decline due to seasonality in the Smart World subsegment.

Mobility

• Faced challenges, particularly in the Automotive sector.
• Trucks & Off Highway and Aerospace & Rail subsegments performed well, growing both sequentially and YoY.

Large Deal Momentum

LTTS continued its strong performance in securing large deals:

• Surpassed $200.00 million in large deal Total Contract Value (TCV) for the third consecutive quarter.
• Secured one $50.00 million deal, three $20.00-30.00 million deals, and six $10.00+ million deals.
• More than half of the large deal wins were in the Sustainability segment.

Strategic Developments

AI Initiatives

• Launched PLxAI, a proprietary AI framework to accelerate product development life cycle for global customers.
• Deployed multiple AI programs for clients and filed 206 patents in the AI domain.

Expansion

• Inaugurated a new design center in Plano, Texas, focused on cutting-edge technologies, cybersecurity, and AI.
• The center is ITAR-compliant and equipped to design, develop, and test defense-related products and systems.

Client Base

• The number of $1.00 million+ clients increased to 200 in Q1, up from 194 in the previous quarter and 177 a year ago.

Outlook

Despite challenges in certain sectors, LTTS management remains optimistic about the company's growth prospects:

• Reaffirmed double-digit growth guidance.
• Expects H2 margins to improve compared to H1.
• Maintains the medium-term target of $2.00 billion revenue.

Amit Chadha, CEO and Managing Director of LTTS, commented on the results: "Our unique balanced 3 segment approach allows us to grow in a derisked manner and safeguarding us in the current uncertain market environment and tightened demand conditions."

As LTTS continues to navigate the dynamic market conditions, its focus on innovation, strategic partnerships, and expansion into high-growth areas positions the company well for future growth. The company's ability to secure large deals and its strong performance in the Sustainability segment highlight its resilience in a challenging global environment.

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.