L&t Technology Services Ltd. · NSE:LTTS
L&t Technology Services — Investor Presentation (July 2024)
25 slides from L&t Technology Services's investor presentation, July 2024
Slide 1: Engineering the Change - Investor Presentation
#ENGINEERING THE CHANGE INVESTOR PRESENTATION July 2024 L&T Technology Services | www.LTTS.com 1
Slide 2: Disclaimer
Disclaimer This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 3: This is L&T Technology Services
This is L&T Technology Services 378 Global Clients 1,343 57 Patents Of Global 100 R&D Spenders as clients 108 90%+ R&D Innovation Labs Repeat Business 23,550+ $1.2 Bn Employees Q1FY25 Annualized Revenue LTTS listed on NSE & BSE #1 Pure Play Engg Services^ Rated by Zinnov, ISG & Everest Since 2016 |
Slide 4: Our Engineering Heritage and Multi-domain Capabilities
Our Engineering Heritage and Multi-domain Capabilities… Consulting, Domain & Design 45% Skill 55% Based L&T Technology Services | www.LTTS.com 4
Slide 5: End-to-End Engineering Partner for our Clients
…Allows us to be the End-End Engineering Partner for our Clients Testing and Manufacturing certification support Inject innovation Improve quality & reliability Design & Product development launch support Optimize cost of development Product Product conceptualization maintenance Accelerate Solutions
Slide 6: Our Playing Field
Our Playing Field Global ER&D Spend Addressed Market India ER&D Market $2.7 Tn $128 Bn $1.5 Tn $71 Bn $86 Bn $35 Bn 2020 2026E 2020 2026E 2020 2026E Zinnov, NASSCOM Estimates L&T Technology Services | www.LTTS.com 6
Slide 7: Digital Driving ER&D Spends
Digital Driving ER&D Spends Digital Engineering Spend Legacy ER&D Spend $ Bn Digital Engg. Spend 2,672 60%+ Of LTTS Revenue FY23 1,584 1,504 1,103 204 545 CAGR 59% Of Global ER&D spend by 2026 889 959 1,088 2013 2020 2026E 2.9X Increase in Digital Engineering Spend by 2026 Source: Zinnov , NASSCOM L
Slide 8: Our Six-Dimensional Glide Path
Our Six-Dimensional Glide Path People Technology Engagement Quotient 3 4 Customer Sustainable 2 E 5 Centricity Operating Model 1 6 Industry Leading Environmental Social & Growth Governance (ESG) Strategy for Profitable, Sustainable & Inclusive Growth L&T Technology Services | www.LTTS.com 8
Slide 9: 108 R&D Innovation Labs
IoT lab Smart manufacturing lab 5G lab 108 R&D IoT solutions come to life- from Focused on engineering Focused on for 5G development, INNOVATION connected workers to predictive analytics and industrial cybersecurity solutions for manufacturing operations management NFV Benchmarking, Validation and D
Slide 10: Enabling Innovation With World Class Solutions
Enabling Innovation With World Class Solutions eVOLTTS Chest rAI 5G Enterprise In-house developed end-to-end vehicle AI-based chest X-ray analysis system to Best in-class lab for automation of 5G SA electrification platform enabling faster assist the radiologists in improving speed and NSA System an
Slide 11: Creating Customer Value Via Crosspollinnovation
Creating Customer Value Via Crosspoll!nnovation By bringing transformative ideas from other industries, LTTS’ Innovations helped us reduce lead time to market. 5G TCU Testing from our Hi-Tech Annotation Technology from Segment for a Transportation Customer Transportation being used for Imaging Medic
Slide 12: Our World Class Talent
Our World Class Talent 23,550+ EMPLOYEES ENGINEERING THE CHANGE 1ST CITIZENSHIP Pure-Play CROSSPOLL!NNOVATE Engineering Tech investments Attracting Innovation Labs, Gen-Z engineers Futuristic Technology EXPERIMENT & EXPLORE Innovation generation Next-Gen career Reveries, TechExpression, Multi-Dimens
Slide 13: Helps us Expand Relationship With Top R&D Spenders
Helps us Expand Relationship With Top R&D Spenders Transportation 8 OF TOP 10 Hi-tech 8 OF TOP 10 57 of Top 100 7 Plant Engineering R&D Spenders OF TOP 10 Medical & Lifesciences 3 OF TOP 5 Industrial Products 7 OF TOP 10 L&T Technology Services | www.LTTS.com 13
Slide 14: What Sets us Apart
What Sets us Apart Our Key Differentiators 01 03 05 Multi Domain Translating Expertise Innovation to Engineering State-of-art Engineering Marquee DNA Research Customer Base & Test Labs 02 04 L&T Technology Services | www.LTTS.com 14
Slide 15: #1 Pure-Play Engineering Services Provider for two consecutive years
Has Led Us To Where We Are #1 Pure-Play Engineering Services Provider for two consecutive years ^ Digital Engineering Aerospace Among Top 5 ESPs Among Top 5 ER&D players ADAS Auto Among Top 3 ESPs Among Top 4 in competency Leading Edge Leading Edge Digital Thread Medical in Emerging Among Top 3 ESPs
Slide 16: Diversified Business Mix
Diversified Business Mix By Vertical Onsite vs. Offshore Split 30% Mobility 35% 41% Onsite Hi-Tech 59% Offshore 35% Sustainability By Geography Fixed Price vs. T&M 7% North America Europe 37% 22% Fixed Price 53% 63% T&M India Rest of the world 18% All Figures Based on Q4FY24 L&T Technology Services
Slide 17: Diversified Customer Base
Diversified Customer Base Top Clients Contribution Scale-up of million dollar clients 60% % of Revenue (LTM) Customer 52% Revenue FY22 FY23* FY24 Q1 FY25 50% (USD Mn) 41% 30 Million + 2 1 5 6 40% 30% 20 Million + 6 11 12 12 26% 20% 10 Million + 22 28 35 31 10% 5 Million+ 48 57 58 60 0% 1 Million + 1
Slide 18: Performance Highlights
Performance Highlights FY20 FY21 FY22 FY23* FY24 Parameters Q1 FY25 786 737 880 1,089 1,164 Revenue from Operations (USD mn) 295.2 56,191 54,497 65,697 88,155 96,473 Revenue from Operations (INR mn) 24,619 16.5% 14.5% 18.3% 17.3% 17.1% EBIT Margin 15.6% 8,186 6,633 9,570 12,121 13,037 Net Income (IN
Slide 19: Financial Performance – Q1 FY25
Financial Performance – Q1 FY25 Amount in ₹ million Income Statement Q1 FY24 Q4 FY24 Q1 FY25 QoQ YoY Revenue 23,014 25,375 24,619 -3.0% 7.0% Cost of sales 16,101 18,050 17,403 Gross Profit 6,913 7,325 7,216 -1.5% 4.4% Selling, General & Administration Expenses 2,385 2,297 2,654 EBITDA 4,528 5,028 4,
Slide 20: Financial Performance – Q1 FY25
Financial Performance – Q1 FY25 Amount in ₹ million Amount in ₹ million Balance Sheet FY24 Q1 FY25 Cash Flow Summary FY24 YTD FY25 Assets Net cash provided by operating activities 14,928 -640 Property and equipment 10,009 9,445 Capex -2,419 -250 Intangible Assets and Goodwill 6,248 6,264 Free Cash F
Slide 21: Positioning LTTS for the Future: Simplify to go Deeper and Scale
Positioning LTTS for the Future: Simplify to go Deeper and Scale Mobility Sustainability Hi-Tech Verticals Automotive Off-Highway Aerospace Industrial Machinery FMCG Medical Semcon CT & ISV NGC Building Tech Oil & Gas Electric Power & Chemicals Utilities Technology Domains Digital Platform 5G & Soft
Slide 22: Next Gen Car's Data Handling Using Ethernet Signals
Next Gen Car's Data Handling Using Ethernet Signals SDV Architecture-based Vehicle Schema: Ethernet Stack enable CAR signals What we enabled • End-to-end AUTOSAR enabled stack for Ethernet signal flow with external triggering signals, development of a AUTOSAR enabled application with Siemens stack a
Slide 23: Making Better Health Decisions With The Cloud
Making Better Health Decisions With The Cloud Digital Health Platform for Connectivity and the Future of Care What we enabled • Designed and developed a healthcare platform adhering to HIPAA and GDPR guidelines, incorporating FHIR and DICOM standards • Developed adjacent code for image analysis to s
Slide 24: Revolutionizing Digital Tri-Phase Ground Trip Control
Revolutionizing Digital Tri-Phase Ground Trip Control Innovative Overcurrent Relay with Advanced Sensing, Seamless Integration, and Robust Connectivity What we enabled • End-to-end design and development of a self-powered overcurrent trip control, supervising up to three fault interrupters • Micropr
Slide 25: About L&T Technology Services
ABOUT L&T TECHNOLOGY SERVICES L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on For additional information about L&T Technology Services Digital Engineering and R&D (ER&D) services. log on to https://www.LTTS.com/ We offer consultancy, design, develo
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