Chennai: L&T Technology Services (LTTS) said it had been awarded a deal during the third quarter worth USD45 million from a US-based automotive company while announcing its quarterly results on Tuesday.
The company said it is set to be its customer’s strategic engineering partner and provide services for its electric vehicle (EV) product portfolio. In addition, three deals with TCV of USD10 million-plus were also signed. Revenues from digital and such high-tech sectors stood at 56% during the quarter, the company said in a statement.
Under the terms of the five-year agreement, LTTS will mark its expansion into Eastern Europe and will work with its customer to deliver solutions leveraging its e-mobility technology competence from LTTS’ ER&D centre in Krakow, Poland.
“Our win in this deal allows us to ramp up our ER&D centre in Krakow. And work on that has begun. I believe the next few years we will be 300 people in Krakow,” Amit Chadha, CEO and managing director, L&T Technology Services told ET.
LTTS saw revenue grow 20% year-on-year to touch Rs 16,875 million (USD225.1 million) in the quarter ended December 31. Net profit grew 34% at Rs 2,488 million while EBIT margin stood at 18.6%, up 340 bps year-on-year, the company said in a statement.
Chadha said the company sustained its performance trajectory with sequential growth of 4.2% in constant currency led by strong demand across segments. He said LTTS is reiterating its guidance of a ‘strong’ 19-20% growth in revenue USD terms for FY 22 and said that the company was on track to deliver the same. Further, he said LTTS’ six big bets are – electric autonomous & connected vehicle (EACV), 5G, med-tech, AI and digital products, digital manufacturing and sustainability.
“We have been investing in Electric, Autonomous and Connected Vehicle (EACV) as part of our 6 big bets and our engineers have developed several new scalable e-mobility solutions that can accelerate global automotive players’ EV development journey. This landmark deal reinforces that our strategic investment is paying off and establishes LTTS’ dominant position in the EACV landscape,”
Chadha said that given the company’s confidence in its growth prospects, it has hired 1,900 trainees, over and above the 1100 trainees who were recruited in the last two quarters. “In three quarters in FY 22, we have taken on 3,000 trainees,” he said. At the end of Q3FY22, LTTS’ employee strength stood at 20,118.
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