LTTS aims at $1 billion revenue for each of its three verticals
verticals into three new verticals — mobility, sustainability and tech – L&T Technology Services (LTTS) told analysts on Tuesday that it aspires to grow each vertical into a $1 billion vertical.
Motilal Oswal said in a note, “For context, annualized revenues from mobility, sustainability, and tech stand at $416 million, $354 million and $411 million, respectively.”
It said while it was encouraged by the IT engineering services firm’s ambition, the company had not specified a time frame for achieving its target.
Analysts at Nuvama said, “Management forecasts India’s share of global ER&D (engineering and research and development) outsourcing market would expand at a CAGR (compound annual growth rate) of 17–22% over 2023–30. They anticipate global ER&D spend to touch $540 billion in the auto segment, $280 billion in transport & off-highway and $120 billion in aerospace & rail by 2030.”
It further said, “LTTS to focus on select vectors of growth — create billion-dollar segments; enhance client experience to grow relationships; co-create value through large deals; invest in technologies ahead of the curve; and nurture ‘Engineers at Heart’ for inclusive growth.”
Experts also said that LTTS is aspiring to build each of the three verticals into billion dollar clubs using both organic and inorganic routes.
They said while margins in two of the three segments, mobility and sustainability, showed a secular improvement over the past three years, tech margins declined during the period. Mobility margins increased to 19.6%
