L&t Technology Services Ltd. · NSE:LTTS
L&t Technology Services — Investor Presentation (October 2024)
25 slides from L&t Technology Services's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
Purposeful. Agile. INVESTOR Innovation. PRESENTATION October 2024 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 373 Global Clients 1,394 57 Patents Of Global 100 R&D Spenders as clients 108 90%+ R&D Innovation Labs Repeat Business 23,700+ $1.2 Bn Employees Q2FY25 Annualized Revenue LTTS listed on NSE & BSE #1 Pure Play Engg Services^ Rated by Zinnov, ISG & Everest Since 2016 |
Slide 4: We are an end-end engineering partner for our Clients
We are an 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 time-to-ma
Slide 5: Our Playing Field
Our Playing Field ER&D Addressable Market: India as a Destination is Sold Global ER&D Spend $2.5T – $3.3T Global ER&D Spend $1.5T – $1.8T ER&D Sourcing Global ER&D Spend $600B – $770B $577B ER&D Sourcing 17-22% $210B – $280B CAGR ER&D Sourcing 16% $55B India Sourcing Share CAGR $130B – $180B India S
Slide 6: Propelled by the Changing Technology Landscape
Propelled by the Changing Technology Landscape h for Manufacturing Responsi Tec bly Embedded Intelligence in AI enabled Robots Industrial Equipment Te Clean Tech Alternate Fuels ch T ha tA Us Software Defined cc Plant Digital Twin ele Machines s Green Hydrogen ove 6G rat Next Gen Motors Green Facili
Slide 7: Our “Go Deeper to Scale” Strategy
Our “Go Deeper to Scale” Strategy… Digital Engineering and R&D Technology Areas www.LTTS.com 7
Slide 8: Drives Our Aspiration…LTTS 3.0
Drives Our Aspiration…LTTS 3.0 Medium Term Outlook Top 5 Global ER&D 01 Services Company Revenue $2 B EBIT 17 - 18% 02 3 Billion-dollar segments Revenue $1,164 M EBIT Revenue 17.1% 03 Technology Partner of Choice $737 M EBIT 14.5% 04 2500+ Patents Values Driven, Inclusive, 05 Client Centric Organiza
Slide 9: How Will We Get There…
How Will We Get There… GROWTH VECTORS 01 02 03 04 05 Create Billion-dollar Enhance Client Nurture Experience to Grow Co-Create Value Invest in Technologies Segments “Engineers at ” Relationships Through Large Deals Ahead of the Curve for Inclusive Growth Offerings in Digital, Standardize on the Clie
Slide 10: What Sets us Apart
What Sets us Apart Our Key Differentiators Engineering Multi State-of-art Translating Marquee DNA Domain Research Innovation to Customer Expertise & Test Labs Engineering Base www.LTTS.com 10
Slide 11: Our World Class Talent
Our World Class Talent GEA: Building Cross-Domain Engineers at Scale 23,700+ GENESIS • Capacity to hire and train 2-3K EMPLOYEES ENGINEERING 3-month training for University graduates plus freshers per year THE CHANGE NOTCH UP • 80% of workforce upskilled or cross- skilled annually Upskilling & cross
Slide 12: Creating Customer Value Via Crosspoll!nnovation
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 Transportation being used for Customer Imaging Medic
Slide 13: #1 Pure-Play Engineering Services Provider for three consecutive years
Has Led Us To Where We Are #1 Pure-Play Engineering Services Provider for three 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 ES
Slide 14: Mobility
Mobility Industry Verticals: Auto Off-Highway Aero Electrification & AV & Connected Software & AI for Planning & Tech Trends Cyber Security Decision Making xEV Mobility Connectivity Software Defined Vehicle (SDV) Hybrids & Electrification Vehicle Engineering Body Powertrain Avionics Onboard Offboard
Slide 15: Sustainability
Sustainability Industrial Machinery & Electric, Power & Industry Verticals: Building Tech. Utilities FMCG Oil & Gas NPD & Product Robotics & Grid Process & Carbon Capture & Tech Trends Electrification Sustenance Automation Digitalization Circular Economy Plant Twins Process Industrial Projects E
Slide 16: Tech
Tech Consumer & Smart Hyperscalers Industry Verticals: Medical Semcon Media Telecom World & ISV Microfluidics, Control systems Immersive-reality Cyber Network Tech Trends HPC MEMS & Robotics Technologies security Automatio Medical Tech n Device Digital Silicon Device Engineering Health Engineering E
Slide 17: Diversified Business Mix
Diversified Business Mix By Vertical Onsite vs. Offshore Split 34% 35% Mobility 42% Onsite Hi-Tech 58% Offshore Sustainability 31% By Geography Fixed Price vs. T&M 7% North America 22% Europe 37% 53% Fixed Price 63% India T&M 18% Rest of the world All Figures Based on Q2FY25 www.LTTS.com 17
Slide 18: 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 Q2 FY25 50% (USD Mn) 42% 30 Million + 2 1 5 7 40% 30% 27% 20 Million + 6 11 12 13 20% 10 Million + 22 28 35 33 10% 5 Million+ 48 57 58 60 0% Top 10 Top
Slide 19: Performance Highlights
Performance Highlights FY20 FY21 FY22 FY23* FY24 Parameters Q1 FY25 Q2 FY25 786 737 880 1,089 1,164 Revenue from Operations (USD mn) 295.2 306.7 56,191 54,497 65,697 88,155 96,473 Revenue from Operations (INR mn) 24,619 25,729 16.5% 14.5% 18.3% 17.3% 17.1% EBIT Margin 15.6% 15.1% 8,186 6,633 9,570 1
Slide 20: Financial Performance – Q2 FY25
Financial Performance – Q2 FY25 Income Statement Q2 FY24 Q1 FY25 Q2 FY25 QoQ YoY Revenue 23,865 24,619 25,729 4.5% 7.8% Cost of sales 17,175 17,403 18,192 Gross Profit 6,690 7,216 7,537 4.4% 12.7% Selling, General & Administration Expenses 1,934 2,654 2,877 EBITDA 4,756 4,562 4,660 2.1% -2.0% Deprec
Slide 21: Financial Performance – Q2 FY25
Financial Performance – Q2 FY25 Amount in ₹ million Amount in ₹ million Balance Sheet FY24 Q2 FY25 Cash Flow Summary FY24 YTD FY25 Assets Net cash provided by operating 14,928 3,741 Property and equipment 10,009 9,753 activities Intangible Assets and Goodwill 6,248 6,224 Capex -2,419 -463 Accounts R
Slide 22: Revitalizing Rail Track Defect Detection: AI-enabled Compute Vision
Revitalizing Rail Track Defect Detection: AI-enabled Compute Vision THE CHALLENGE The client sought a compact, battery-operated rail track defect detection system which can be retrofitted into a train’s unpowered end wagon WHAT WE ENABLED • We designed and developed a unique, embedded AI-based, batt
Slide 23: Leveraging 3D Plant Digital Twins: Real-time View Across Geographies
Leveraging 3D Plant Digital Twins: Real-time View Across Geographies THE CHALLENGE The client sought an innovative digital twin solution which would provide a 3600 view and real-time insight into the manufacturing operation across 25+ sites WHAT WE ENABLED • Derivation of CFIHOS ++ Data Model ensure
Slide 24: Re-engineering Media Experiences: AI-enabled, Automated, Consistent
Re-engineering Media Experiences: AI-enabled, Automated, Consistent THE CHALLENGE The client, a media solution provider with 20+ million subscribers, and 70+ linear channels delivered worldwide, sought a comprehensive solution that could automate audio/video playback testing across all to their cust
Slide 25: Global locations and contact
Edison, New Jersey USA HQ London, United Kingdom Toronto, Canada Europe HQ Engineering Design Center Gothenburg, Sweden Rockford, Illinois Digital Engineering Center Aerospace & Defense Engineering Germany Design Center • Munich FMCG Industries • Augsburg Automotive CoE Krakow, Poland Santa Clara, C
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