India’s Top Engineering Firm is Building the Future of 6G - Will It Pay Off?
A global leader in ER&D services is taking wireless innovation to the next level.
L&T Technology Services (LTTS) and Altair have launched a 5G-6G Wireless Center of Excellence (CoE) to drive innovation and connectivity across industries. The CoE will leverage Altair’s simulation tools and LTTS’ engineering expertise to develop advanced wireless solutions for telecom, smart factories, connected vehicles, and healthcare. It aims to address key industry challenges such as network reliability, operational costs, and slow innovation cycles.
Company Overview
L&T Technology Services Limited (LTTS), a subsidiary of Larsen & Toubro, specializes in technology services across multiple sectors. The company focuses on mobility, sustainability, and tech segments, catering to top global firms.
Q3 FY25 Performance
LTTS reported a 3.1 per cent revenue growth in constant currency, led by the Tech segment with an 11.1 per cent rise, followed by Sustainability at 4.0 per cent. EBIT margin improved by 110 basis points to 16.2 per cent, excluding non-operational M&A expenses.
Large Deal Bookings
Q3 saw the highest-ever large deal bookings, with eight major deals. These include one deal worth Rs 50 crore, two over Rs 35 crore, two over Rs 25 crore, and three exceeding Rs 10 crore. The company continues to strengthen its large deal pipeline with a focus on next-generation product development.
Segment Performance
The Mobility segment faced a 5.2 per cent decline due to OEMs pausing projects, but new deals suggest recovery in Q4. The Sustainability segment grew by 4.0 per cent, with significant projects in Oil & Gas and FMCG plant modernization. The Tech segment saw a strong 11.1 per cent rebound, driven by Communications, Media, and MedTech.
Technology and Innovation
LTTS added 54 patents in Q3, bringing total filings to 1,448. The company launched an NVIDIA AI Experience Zone in Bangalore and initiated R&D programs on AI-driven automation.
Outlook and Challenges
LTTS aims for a near 10 per cent revenue growth in FY25, with an EBIT margin target of 16 per cent. While the automotive sector faces stress, recovery is expected in FY26. Demand uncertainties persist in the Agriculture and Construction sectors.
Stock Valuation
The company has a market cap of Rs 53,860 crore, with a P/E ratio of 43.6, higher than the industry average of 30.3. It maintains a strong financial position with an ROCE of 33.4 per cent, ROE of 25.8 per cent, and a low debt-to-equity ratio of 0.12. LTTS has delivered a 7.6 per cent return on a year-to-date basis.
Disclaimer: The article is for informational purposes only and not investment advice.