L&T Group's IT Arm Secures a EUR 50 Million Deal With a European Automotive OEM; LIC India Holds 6.92 per cent Stake in the Company
With a PE ratio of 38.25, the company trades at a premium compared to the industry PE of 29. The company has ROCE of 33.4 per cent and ROE of 25.5 per cent.
L&T Technology Services (LTTS), a prominent player in engineering and technology services, has announced a transformative €50 million deal with a leading European automotive Original Equipment Manufacturer (OEM). This significant agreement marks a milestone for LTTS in the Mobility segment, enhancing its reputation as a trusted engineering partner in the global automotive ecosystem. The deal involves the development and operation of next-generation software platforms for current and future vehicle models, including the establishment of a development centre as part of the client's global right shoring strategy. The client's advanced technology stack features a unified architecture, proprietary operating system, and automotive cloud, alongside cutting-edge vehicle features such as driver assistance systems and standardised infotainment platforms.
LTTS secured this prestigious deal through its expertise in Software Defined Vehicle (SDV) development, Advanced Driver Assistance Systems (ADAS), and Software Defined Everything (SDe). The company's strategic investments in driverless car technologies have facilitated the development of an integrated ADAS stack and innovative solutions in AI and SDVs.
Amit Chadha, CEO & Managing Director of LTTS, expressed excitement about the collaboration, stating, 'We are thrilled to collaborate with one of the most influential automotive leaders in Europe. This deal underlines LTTS’ proven competencies in software-defined mobility and reflects our commitment to enabling transformation in the global automotive landscape.
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L&T Technology Services (LTTS) is a leading engineering services provider, offering a wide range of engineering, research and development (ER&D), and digitalisation solutions. Incorporated in 2012, LTTS serves diverse sectors, including Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices, and Plant Engineering. The company boasts a robust clientele of 69 Fortune 500 companies and 53 of the world's top ER&D companies, with a presence in over 25 countries.
LTTS operates through three major business segments: Tech, Mobility, and Sustainability. The Tech segment, contributing 35 per cent of revenue in 9M FY25, focuses on software development and hardware design, with a 6 per cent YoY growth. The Mobility segment, accounting for 34 per cent of revenue, saw a 12 per cent YoY increase, driven by advancements in transportation technology. The Sustainability segment, representing 31 per cent of revenue, grew 6 per cent YoY, fuelled by demand for plant modernisation. LTTS has secured eight major deals in Q3 FY25, including a $50 million contract. The company has a strong focus on innovation, holding 1,448 patents and forming strategic partnerships with leading hyperscalers. Recent acquisitions, such as Intelliswift Software, enhance its capabilities in the Hyperscalers and Service-led sectors.
As of April 1, 2025, the current stock price of L&T Technology Services is Rs 4,547. The 52-week high is Rs 5,829.8, and the 52-week low is Rs 4,360.9. L&T Technology Services has a market capitalisation of Rs 47,655 crore. The company's 1-year return stands at -17.87 per cent, while the 3-year return is -12.04 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 2,411.80 crore, reflecting a YoY growth of 12.29 per cent compared to Rs 2,147.90 crore in December 2023. The operating profit stood at Rs 472.90 crore, marking a 3.96 per cent increase from Rs 454.90 crore in the same quarter last year. However, the profit after tax (PAT) declined by 6.29 per cent to Rs 300.80 crore from Rs 321.00 crore in December 2023.
In FY24, the company posted a revenue of Rs 8,678.90 crore, registering a 9.72 per cent growth compared to Rs 7,910.00 crore in FY23. The net profit for the year stood at Rs 1,258.50 crore, up 9.13 per cent from Rs 1,153.20 crore in the previous financial year.
With a PE ratio of 38.25, the company trades at a premium compared to the industry PE of 29. The company has ROCE of 33.4 per cent and ROE of 25.5 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.