EURO 4,50,00,000 contract: This IT-company enters into a strategic partnership with FORVIA – details inside!
The shares of the company have an ROE of 26 per cent and an ROCE of 33 per cent.
In a five-year strategic partnership valued at approximately EURO 45 million, L&T Technology Services (LTTS), a leader in engineering and R&D services, and FORVIA, the 7th largest global automotive supplier, joined forces to support FORVIA's Clean Mobility division. The collaboration includes the transfer of nearly 300 engineers (representing a 95 per cent success rate) from FORVIA's Augsburg (Germany) and Bangalore (India) locations to LTTS. These engineers will continue working on internal combustion engine development projects within LTTS.
Through this strategic partnership, LTTS will take the lead on engineering activities for FORVIA's Clean Mobility division, ensuring a smooth transition for the roughly 300 engineers who will continue working on their existing projects at their current locations. This not only benefits FORVIA by allowing them to focus on developing ultra-low emission technologies while maintaining high-quality engineering support, but it also provides stability for the transferred employees by guaranteeing their continued employment and career development. LTTS's Global Engineering Academy will further enhance these engineers' skillsets by providing them with training and opportunities to work on new projects within the broader LTTS network.
L&T Technology Services Ltd (LTTS) is an engineering services provider that offers ER&D and digitalization solutions to companies in a variety of industries, including transportation, industrial products, telecom and hi-tech, medical devices, and plant engineering. It has a customer base that includes 69 Fortune 500 companies and 53 of the world's top ER&D companies. The company also provides digital engineering advisory services and has 296 global clients in 25+ countries.
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Quarterly Results: The net sales increased by 7.04 per cent to Rs 2,537.50 crore and operating profit increased by 5.31 per cent to Rs 558.80 crore in Q4FY24 compared to Q4FY23. The company reported a net profit of Rs 341.40 crore in Q4FY24.
Annual Results: The net sales increased by 9.44 per cent to Rs 9,647.30 crore, operating profit increased by 8.25 per cent to Rs 2,126.30 crore and net profit increased by 7.39 per cent to Rs 1,306.30 crore in FY24 compared to FY23.
The shares of the company have an ROE of 26 per cent and an ROCE of 33 per cent. The company has been maintaining a healthy dividend payout of 41.7 per cent. In Q4, DIIs have increased their stake from 8.41 per cent in March 2023 to 12.09 per cent in March 2024. Investors should keep an eye on this multibagger IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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