BENGALURU: L&T Technology Services (LTTS), a subsidiary of Larsen & Toubro, is targeting a billion dollar revenue run rate by the second or third quarter of FY23, and the company has retained its revenue guidance of 19-20% for FY22.
In an interaction with TNIE, Amit Chadha, CEO and Managing Director, L&T Technology Services, said, “We will be within that guidance (19-20%), and we will get to a billion-dollar run rate by Q2-Q3 of FY23.”The engineering services company has posted a 34% increase in its net profit at `249 crore for the third quarter of this fiscal. Its revenue was `1,688 crore in the third quarter, up 20% Y-o-Y.
The company improved its margin to 18.6% in the third quarter from 18.4% in the second quarter. “We have come to this 18.x range and I’m comfortable at this range right now and we will see upward from here,” Chadha said. During the third quarter, LTTS won a $45 million deal from a US-based automotive Tier-I company to be their strategic engineering partner for their Electric Vehicle (EV) product portfolio, and as part of this deal, the company is setting up an R&D centre in Krakow, Poland. It also won three deals with TCV (total contract value) of over $10 million.
Chadha said that they will continue to see deal wins and that the pipeline has improved quarter on quarter.
L&T Technology is betting on six areas -electric autonomous & connected vehicle (EACV), medtech, 5G, AI & digital products, digital manufacturing and sustainability. “All these six have their own trajectories of demand that are fairly robust and sustainable.
Right now, everybody is focused on trying to get cars electric, but there are programmes in progress to get heavy vehicles to be electric as well,” he said. The company’s attrition rose to 17.5% in Q3, and Chadha believes that from Q4 onwards attrition will stabilise.