LTTS Plans $3 Bn Push, Focusing On Mobility, Sustainability And Technology

Engineering services company L&T Technology Services (LTTS) has chalked out a plan to expand its operations across three key segments, including mobility, sustainability and technology, with each segment targeted to generate USD 1 billion in revenue. 

The company’s CEO & MD Amit Chadha said this growth is part of the company’s broader strategy to achieve USD 3 billion in revenue across these segments.

“Our vision is to become a top-five global ER&D player, achieving USD 3 billion in revenue across these segments. We also aim to maintain our client-centric approach and become the technology partner of choice, with an aspiration to reach 2,500 patents in the medium term, along with 17-18 per cent EBIT,” Chadha told reporters in Bangalore.

Speaking ahead of LTTS’s Investor and Analyst Day on Monday, the CEO mentioned that the company’s medium-term target is to reach USD 2 billion in revenue. Although Chadha did not provide a specific timeline for this goal, he expressed confidence in the company’s ability to deliver. “Someone asked me today if we’re putting a timeline on the USD 2 billion target. The answer is no—it remains a medium-term goal,” Chadha said, adding, “But we’ve built a culture of delivering on our commitments.”

To drive this growth, LTTS has reorganised its operations around the three strategic segments of mobility, sustainability and technology. Each of these segments is currently generating around USD 400 million, and the company has decentralised decision-making, allowing segment heads to make key strategic decisions. “With this change, we’ve passed about 50 per cent of those decisions to our segment heads,” said the LTTS CEO.

“Our vision, mission, and values are designed to last a decade, while the six dimensions guide us for the next five years. These strategic bets have helped us grow from around USD 750 million in revenue with a 14 per cent EBIT to now achieving approximately 18.9 per cent EBIT, without even factoring in our Smart World initiatives. Today, we stand at about USD 1.2 billion in annual revenue,” added Chadha.

In addition to its focus on mobility and sustainability, LTTS is making decent strides in AI, cybersecurity, and Software-Defined Everything (SDx). The company said it is working with semiconductor firms on cutting-edge technologies, including three to four nanometre chips. 

"In our business, thanks to the leadership of Ashish Khushu (CTO at LTTS) and the rest of the team, we've filed over 150 AI-related patents, both for our customers and ourselves, and we’ve begun generating revenue from these innovations. Just two quarters ago, we weren’t generating revenue in this space, but now, clients are signing us up as their AI partners. We're developing case studies in areas like supply chain, manufacturing, and medical applications" 

- Amit Chadha, CEO & Managing Director at LTTS on AI

Geographies

While LTTS said it sees big opportunities in international markets like the US, Europe, Japan and the Middle East, Chadha acknowledged the distinct challenges and opportunities within the Indian market. However, he mentioned that government contracts, while promising, take time to materialise due to the unique pace of government decision-making. 

“India, as a geography, is distinct from other markets, primarily because the government is the major customer here,” Chadha said.

LTTS closed Wednesday’s trading session at Rs 5,683.60, up Rs 196.20 (3.58 per cent).

Rohit Chintapali

BW Reporters The author is Regional Editor (Technology & South) at BW Businessworld.