L&T Technology Services Limited (LTTS), a global leader in engineering and technology services, has announced a significant milestone in its Tech segment. The company has secured a multi-year software engineering contract worth approximately $60 million from a major US wireless telecommunications provider, building on a decade-long partnership between the two entities.

Contract Details

The agreement outlines several key areas of collaboration:

• Network software development
• Application engineering solutions
• R&D lab integration
• New product development
• Functionality testing for network software automation platforms

To support this engagement, LTTS will establish a dedicated delivery center in the United States, enhancing project delivery capabilities and ensuring closer collaboration with the client.

Expanding Services and Innovation

LTTS plans to leverage its expertise in Smart World Connectivity and next-generation networks to drive cutting-edge innovations for the client. The company is also looking to expand its service offerings by integrating AI-powered test automation platforms, which aim to streamline new product development and enhance operational efficiency.

Strategic Importance

This contract underscores the strength of the long-standing partnership between LTTS and the US telecom provider. The company's proactive investments in advanced labs, custom solutions, and nearshore centers played a crucial role in securing this engagement, reflecting LTTS's commitment to delivering value-driven engineering expertise.

Management Commentary

Amit Chadha, CEO and Managing Director of L&T Technology Services, commented on the development:

"This new agreement in our Tech segment with such a prestigious Telecommunications leader reinforces our longstanding relationship and shared vision in next-generation communications, network automation, and AI. By leveraging our Smart World connectivity solutions along with our extensive expertise in enterprise 5G rollouts and telecom innovations, we are proud to contribute toward achieving the client's strategic goals."

Company Overview

L&T Technology Services (LTTS) is a listed subsidiary of Larsen & Toubro (L&T) and operates across various segments including Mobility, Sustainability, and Tech. The company boasts:

LTTS serves a diverse customer base, including 69 Fortune 500 companies and 57 top ER&D companies across industrial products, medical devices, transportation, telecom & hi-tech, and process industries.

This strategic engagement not only strengthens LTTS's position in the telecommunications sector but also demonstrates the company's capabilities in delivering advanced engineering solutions for next-generation communication technologies.

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.